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  3. Study Set
    Behavioral Economics
  4. Exam
    Exam 8: Confirmation and Overconfidence
  5. Question
    An Overconfident Individual May Perceive an Asset to Be Less
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An Overconfident Individual May Perceive an Asset to Be Less

Question 1

Question 1

True/False

An overconfident individual may perceive an asset to be less risky than it really is because they under-estimate the variance of the return on the asset, but correctly estimate the mean of the return.

Correct Answer:

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