Investment Decision-Making Psychology Quiz

1. What is herd mentality in investing?

Making independent investment decisions Following the crowd's investment choices Avoiding all risky investments

2. How does confirmation bias affect investment decisions?

Seeking information that contradicts beliefs Focusing on information that supports existing beliefs Ignoring all new information

3. What is an example of anchoring bias?

Selling a stock when its price drops significantly Basing decisions on an initial stock price Diversifying across multiple asset classes

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