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Understanding Investor Biases Quiz

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1. What is the term for the human tendency to rely too heavily on the first piece of information encountered when making decisions, a common bias seen in investors?

2. What is the bias where investors may hold onto assets that have lost value in the hope of a rebound, instead of cutting losses and selling?

3. Which bias describes the situation where investors are overly optimistic, leading them to overestimate their knowledge and ability to predict outcomes?

4. What is Confirmation Bias in the context of Investing?

5. A bias where people overestimate the probability of complex events occurring due to over-reliance on representativeness and stereotypes is known as what?

6. What cognitive bias leads investors to be overly influenced by recent trends when making investment decisions?

7. What is the bias where people believe they could have predicted an event after it has already occurred?

8. Which of the following describes an investor's over-concern with loss, which can prevent them from making necessary investment decisions?

9. Which of the following is the term for a bias where investors follow the crowd in buying or selling trends?

10. What is the term for a cognitive bias where investors make judgments on the likelihood of an event happening based on how easily that kind of event can be brought to mind?