Which one of these terms is used to describe a principle where investors draw conclusions from insufficient data?
A)Representativeness
B)Synergy
C)Conservatism
D)Arbitrage
E)Independent deviations from rationality

Question

Quizplus · Accepted Answer

Representativeness is a cognitive bias where individuals draw broad conclusions from specific observations, often leading to errors in judgment or decision-making, such as in investing based on insufficient data.

Which One of These Terms Is Used to Describe a Principle