Which of the following is a characteristic of 'Overconfidence' as a behavioural bias?
A. The tendency to underestimate one’s own abilities
B. The tendency of individuals to overestimate their own knowledge, abilities or the precision of their information
C. Only the absence of any self-assessment
D. Perfectly calibrated confidence intervals
Answer: Option B
Solution (By JKSSB Mock Tests)
Overconfidence manifests as excessive confidence in one’s own judgments, over-precision in probability estimates, or the better-than-average effect, and can lead to excessive trading and other suboptimal decisions.
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