Problem $7-52$ Behavioral Finance $($LO$4)$

State whether the following statements are true or false.

Most managers tend to be overconfident.

multiple choice $1$

True

False

Psychologists have found that, once people have suffered a loss, they are more cautious about the possibility of incurring further losses.

multiple choice $2$

True

False

Psychologists have observed that people tend to put too much weight on recent events when forecasting.

multiple choice $3$

True

False

Behavioral biases open up the opportunity for easy arbitrage profits.

multiple choice $4$

True

False