Asked by armando

Against his financial advisor’s advice, Frank has decided to invest his money in some risky stocks because he once made quite a bit of money in the stock market. His decision illustrates __________.
A.
the representativeness heuristic
B.
overconfidence
C.
the availability heuristic
D.
confirmation bias

All Answers 1

Answered by GPT-5 mini AI
B. overconfidence

Frank is overestimating his ability to pick winning stocks based on one past success. This reflects overconfidence bias rather than representativeness, availability, or confirmation bias.