____________ may be responsible for the prevalence of active versus passive investments management.
A)Forecasting errors
B)Overconfidence
C)Mental accounting
D)Conservatism

Question

Quizplus · Accepted Answer

Overconfidence can lead investors to believe that they can outperform the market through active management. This may be a driving factor in the prevalence of active management over passive management. Forecasting errors, mental accounting, and conservatism may all play a role in investment decision-making, but may not be as directly linked to the choice between active and passive management.

____________ May Be Responsible for the Prevalence of Active Versus