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Options
- A
He will make careful investment choices
-
He will take higher risks in his investments
Correct answer
- C
His portfolio will have all good blue chip shares
- D
He will keep the risks low in his investment portfolio
Why this is the answer
Overconfidence bias causes investors to overestimate their abilities or knowledge, leading them to take on higher risks. They may believe they can manage investments better than others, which can result in poor decision-making and excessive risk-taking.
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