Assume you are an overconfident manager.You are most apt to do which one of the following more so than you would if you were not overconfident?
A)research a project more thoroughly before committing funds to commence it
B)accept risky projects that turn out to be less profitable than you expected
C)wait until new technology proves its worth before incorporating it into your firm's operations
D)avoid mergers and acquisitions
E)invest excess company cash more conservatively than your peers at other firms

Question

Quizplus · Accepted Answer

Overconfident managers are more likely to accept risky projects without thoroughly analyzing the potential downside. This overconfidence can lead to poor decision making and lower profits for the firm. Accepting risky projects that turn out to be less profitable than expected is a common behavioral bias of overconfident managers.

Assume You Are an Overconfident Manager