Many investment advisors attribute their successful outcomes to skill, even when it is more likely luck, which is an example of which bias?
A. Overconfidence.
B. Escalation of commitment bias.
C. Hindsight.
D. Availability.
E. Framing.
A. Overconfidence.
The overconfidence bias is the bias in which people's subjective confidence in their decision making is greater than their objective accuracy. For instance, with experienced investment advisors whose financial outcomes simply depended on luck, behavioral psychologist Daniel Kahneman found "the illusion of skill is not only an individual aberration; it is deeply ingrained in the culture of the industry."
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A. the cost method is used. B. the equity method is used and line-by-line consolidation is required. C. the company that has more net assets is deemed the parent. D. the equity method is used and line-by-line consolidation is not required.
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A) selective B) exclusive C) intensive D) exponential E) comprehensive
Which of the following is a condition required by the SEC for the recognition of revenue?
A) Completion of goods manufactured. B) Execution of a promissory note. C) Price in excess of $100. D) Reasonable assurance of collection.
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Indicate whether the statement is true or false