Which of the following is not a cognitive bias that occurs in financial management?
A) Framing
B) Anchoring
C) Random walk
D) Loss aversion
E) Overconfidence

Question

Quizplus · Accepted Answer

Random walk is a theory suggesting that stock market prices evolve according to a random walk and thus cannot be predicted, rather than a cognitive bias, which is a systematic pattern of deviation from norm or rationality in judgment. Cognitive biases like framing, anchoring, loss aversion, and overconfidence affect decision-making processes, including in financial contexts.

Which of the Following Is Not a Cognitive Bias That