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Examples of cognitive errors would least likely include: Reacting slowly to new information regarding an investment...

Examples of cognitive errors would least likely include:

Reacting slowly to new information regarding an investment

Making inaccurate estimates of future profitability

Assign too little weight to new information

Performing research on an IPO before committing to it

Solutions

Expert Solution

Making and inaccurate estimate of the future profitability is a cognitive error because cognitive errors are basically involved with the behaviour bias of an individual and reacting upon the different informations according to their behaviour so I think making inaccurate estimate of the future profitability is related to cognitive errors because the industry trying to estimate the profits of company.

Reacting slowly to new information and placing little weight to them are also example of the cognitive errors because the investor is reluctant enough not to react to the new information and he is not proactive.

performing research on an initial public offer before committing to it is not a cognitive error but it is being a proactive investor who is trying to be proactive in order to invest into the market and it is not related to cognitive biases.

Correct answer will be option (D) performing research on an initial public offer before committing to it.

jeff jeffy answered 2 years ago
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