Believing that all investment funds consistently beat the market because the hedge funds that exist this year all of have beaten the market over the last decade suffers from faulty inductive reasoning because of what type of bias?
A) Predictable-world bias
B) Availability bias
C) Over-optimism bias
D) Confirmation bias

Question

Quizplus · Accepted Answer

This is an example of availability bias, where the decision is influenced by information that is more readily available (in this case, the performance of existing hedge funds) rather than all relevant data. This can lead to overestimating the success rate of investment funds because the ones that failed and are no longer around aren't considered.

Believing That All Investment Funds Consistently Beat the Market Because