People will systematically tend to underestimate the level of market efficiency because:

Question

Quizplus · Accepted Answer

All of the given options contribute to people systematically underestimating the level of market efficiency. Forgetting losses can lead to selective memory bias, while vested interests can lead to confirmation bias. Additionally, distinguishing between ability and luck is challenging and can lead people to attribute market outcomes to skill rather than randomness.

People Will Systematically Tend to Underestimate the Level of Market