Stockbrokers frequently assume that their skills allow them to pick stocks that will beat the overall market performance. This mindset is an example of which psychological bias?

Multiple choice question for Psychology Mcqs. Select an option, then review the explanation below.

Explanation

The belief that one's own ability guarantees superior stock selection demonstrates overconfidence, where individuals overestimate their knowledge or control over outcomes. This differs from functional fixedness (A), framing bias (B), and representativeness heuristic (C), which involve other cognitive biases.

Practice related questions from the same subject.

1.Who is recognized as the pioneer of the psychoanalytic approach in psychology?
2.What does the term "Autophobia" refer to?
3.Which section of a neuron is primarily responsible for receiving signals from other neurons?
4.Which type of behavior encompasses complex actions such as biological rhythms, territoriality, courtship, mating, aggression, altruism, and social structure?
5.Which type of behavior relies on an individual's personal experiences and requires the nervous system's development and maturation?

Stockbrokers frequently assume that their skills allow them to pick stocks that will beat the overall market performance. This mindset is an example of which psychological bias?

Explanation

More Psychology Mcqs