Question

Which of the following is the LEAST likely in the category of familiarity bias? A. Investing...

Which of the following is the LEAST likely in the category of familiarity bias?

A.

Investing disproportionately large amount in own employer.

B.

Investing in stocks of the company that produces familiar products.

C.

Investing in stocks of the company that has been doing well in the past.

D.

Investing in local companies.

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Answer #1

c.investing in stocks of the company that has been doing well in the past.

The above investment can be based on some logical analysis than on familiarity bias.

The following investments can be said to have familiarity bias.

Investing disproportionately large amount in own employer

Investing in stocks of the company that produces familiar products.

Investing in local companies.

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