Investors bragged about their investing expertise in the stock market rally between 1996 and early 2000. Knowing individuals rely on the self-serving bias to explain failure, which of the following explanations would an investor be most likely to state after the market imploded in 2000?

Question

Quizplus · Accepted Answer

B) The self-serving bias places the blame for failure on external factors such as bad luck or unproductive co-workers, rather than taking personal responsibility for the failure. Therefore, the investor is likely to blame the analysts for not looking at the numbers properly. In each of the other choices the investor either assumes responsibility for his losses, or does not blame others.

Investors Bragged About Their Investing Expertise in the Stock Market