Which of the following best illustrates the overconfidence bias?
A) Investors sell winners too early.
B) Investors avoid stocks with recent poor performance.
C) Investors hold losers too long.
D) Investors trade securities too frequently.

Question

Quizplus · Accepted Answer

Overconfidence bias leads investors to believe they have superior knowledge or ability, causing them to trade securities more frequently than is optimal.

Which of the Following Best Illustrates the Overconfidence Bias