Which of the following characteristics are referred to as representativeness?

Which of the following characteristics are referred to as representativeness?




I. hesitating to sell stocks at a loss
II. basing conclusions on small samples
III. underestimating the effects of random chance
IV. underestimating the level of risk in an investment



A) I and IV only
B) II and III only
C) I, II and III only
D) I, II, III and IV only





Answer: B


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