Which scenario below is the best example of the overconfidence bias? a) John has taken two online courses on technical a

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answerhappygod
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Which scenario below is the best example of the overconfidence bias? a) John has taken two online courses on technical a

Post by answerhappygod »

Which scenario below is the best example of
the overconfidence bias?
a) John has taken two online courses on technical analysis.
He stumbled across tradingview.com and has been using this approach
to invest his RobinHood account ever since. He noticed what he
thinks is favorable price action on a stock that he is following.
He put half of his $5,000 trading account into this stock.
b) Peter has been playing with penny stocks for about a
year. He has seen some positions make a bunch of money and some
lose a bunch (in relative terms). He read a newsletter that talked
about a new biotech firm working on a topical vaccine delivery
method. If the process is approved by the FDA, then this stock
could have a major impact on society. If the process is not
approved, then it will likely go out of business. Peter considers
this information and decides to invest based on a hunch.
c) Allison has been following the industrial paints
industry for a while. Her dad works as an engineer in the industry
and it sparked an awareness and interest in her. She finds a
start-up company that invented a new application process (patent
pending). She invests 10% of her portfolio in this company.
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