Which statement is true regarding overconfidence?
A)Overconfidence leads to trading too often.
B)Overconfidence afflicts women more often than men,and it also leads women to trade too often.
C)Overconfident investors think they can beat the market.
D)Both A and C

Question

Quizplus · Accepted Answer

Overconfidence can lead investors to believe they can beat the market and therefore trade too often, which can ultimately lead to lower returns. This behavioral bias is not specific to one gender, but rather affects both men and women. Therefore, both statement A and C are true.

Which Statement Is True Regarding Overconfidence