Conservatism implies that investors are too __________ in updating their beliefs in response to new evidence and that they initially __________ to news.
A) quick; overreact
B) quick; underreact
C) slow; overreact
D) slow; underreact

Question

Quizplus · Accepted Answer

Conservatism bias suggests that investors are slow to update their beliefs when presented with new evidence, leading them to underreact to news.

Conservatism Implies That Investors Are Too __________ in Updating Their