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John conducted an experiment, in which he sent actors to financial advisors

Finance Jan 22, 2021

John conducted an experiment, in which he sent actors to financial advisors. They found that the financial advisors did not challenge the assumptions that supposedly made these "clients" put all their money in one kind of investment. Which psychological phenomenon has been cited to be responsible for this behavior? Select one: a. None of the options O b. The financial advisors were overconfident about their own ability as financial advisors. O c. The financial advisors suffered from Antisocial Personality Disorder. O d. The financial advisors did not want to stir up cognitive dissonance feelings in their "clients". e. The financial advisors were influenced by Kahneman's and Tversky's probability weighting function, which lead them to overweight very small probabilities.

Expert Solution

Cognitive dissonance can make people feel or become uncomfortable/ uneasy when there is a dispute between their beleifs and the behavior which involves something that is central to their own self.

Hence in the above case, the Financial advisors did not want to stir up cognitive dissonance in their clients

Hence correct answer is Option D

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