Question

In the S&P 500 forecasting exercise, many subjects seemed to be subject to the representativeness heuristic. This concept of behavioral finance posits that:

Answer 1

"In the representativeness heuristic, the probability that Steve is a librarian, for example, is assessed by the degree to which his is representative of, or similar to, the stereotype of a librarian," Tversky and Kahneman explain.

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