Phillip owns some stocks of a pharmaceutical company.Lately he has been anticipating that the company will go bankrupt.He decides to find out more about the company's financial condition before selling the stocks.However,he tends to read only the blogs of investors who are expecting the company to go bankrupt.He soon makes up his mind and sells the stock just before its price reaches an all-time high.Phillips's behavior is an example of ________ bias.

Question

Quizplus · Accepted Answer

Phillip's behavior demonstrates confirmation bias, as he sought out sources that confirmed his belief that the company would go bankrupt, rather than considering a range of perspectives and information before making a decision.

Phillip Owns Some Stocks of a Pharmaceutical Company