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Lizbeth Servin
on Nov 11, 2024

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Mike Crampton's stockbroker has informed him that he has suffered substantial investment losses.When Mike tells his wife,she angrily responds,"I could have told you that your investment plan would fail!" Her comment best illustrates

A) hindsight bias.
B) debriefing.
C) the placebo effect.
D) replication.

Hindsight Bias

The predisposition to claim that, had one known, the result of an event could have been foreseen or expected.

Investment Plan

is a strategic approach to investing that outlines how an individual or organization will allocate resources across various assets to achieve financial goals.

Investment Losses

Financial losses that occur when the value of an investment decreases compared to its purchase price.

  • Highlight and interpret psychological theories including the bias of hindsight, placebo effects, and unwarranted confidence.
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Sadhika RattnamNov 14, 2024
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