a) Sirus Chan tells his adviser he'd like to invest solely in companies that have experienced high profitability over the past three years

Finance Jan 15, 2021

a) Sirus Chan tells his adviser he'd like to invest solely in companies that have experienced high profitability over the past three years. The behavioral bias best characterizing Chan's attitude is

a. representativeness

b. overconfidence

c. loss aversion

b) In a survey, security analysts are asked to rate themselves into one of the three categories given below

1. Above average

2. Average

3. Below average

90 % of the analysts responded that they are above average relative to their peers. The behavioural bias exhibited by them is

a. Representativeness

b. Frame dependence

c. Overconfidence

Expert Solution

A) option a representativeness is correct answer

B) option c overconfidence is correct has they solely can't make them selves bad so they told above average

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