Stockbrokers often believe that their own expertise will enable them to select stocks that will outperform the market average.This belief best illustrates
A) a fixation.
B) the framing effect.
C) the availability heuristic.
D) overconfidence.

Question

Quizplus · Accepted Answer

This is an example of overconfidence bias, where individuals overestimate their abilities to make accurate predictions or judgments. Stockbrokers believing they can select stocks that outperform the market average is an example of this bias.

Stockbrokers Often Believe That Their Own Expertise Will Enable Them