Which of the following statements is LEAST consistent with the forms of human bias in decision-making covered in the lecture material on ‘Human bias and money happiness’?Question 3AnswerA Financial Adviser is more likely to be trusted by their clients than other financial advisers if they are both more charismatic and physically attractive.If an individual ‘falls in love’ with a house they are thinking of buying in an auction, they are more likely to pay a price significantly higher than it is really worth.A graduate invests in a fund that contains a diversified portfolio of stocks because they think that diversification can reduce risk without significantly reducing long-term expected future returns.An investor has lost a lot of money on a bad investment but is holding onto the investment hoping that it will increase in value sometime soon.

Which psychological bias is Anderson overlooking when he relies on the unanimous decisions of the Wealth Management Investment Committee?A.Social proofB.Confirmation biasC.Gambler’s fallacyD.Anchoring biasE.Optimism bias

The belief that people will behave based on their perceived likelihood that their effort will lead to a certain outcome and on how highly they value that outcome defines the ______ theoryMultiple choice question.equityexpectancyorganization's ERGreinforcement

Which of the following is a source of bias that can adversely affect the way managers make decisions?Multiple Choicedialectical inquiryescalating commitmentbounded rationalityeconomic feasibilityreasoned judgments

Which of the following decision-making biases are people with high and low levels of intelligence likely to fall prey to?

When an investment advisor attempts to determine an investor's risk tolerance, which factor wouldthey be least likely to assess?A. The investor's prior investing experienceB. The investor's degree of financial securityC. The investor's tendency to make risky or conservative choicesD. The level of return the investor prefersE. The investor's feelings about loss