An overconfident investor will tend to:
A)trade primarily in securities from their local area.
B)trade less frequently than an average investor.
C)underperform due to excess trading.
D)suffer from the disposition effect.
E)underestimate their ability to pick a winning stock.

Question

Quizplus · Accepted Answer

An overconfident investor is likely to engage in excess trading, believing that their abilities or insights are superior to those of the market, which can lead to underperformance due to transaction costs and poor decision-making.

An Overconfident Investor Will Tend To