Dorothy likes to invest in gold as part of her overall financial investment portfolio, as her gut tells her it will increase dramatically in value. Her favorite and only source of investment advice is Wizard's Gold Hour on the OZ cable channel. As a result of this advice, Dorothy's portfolio mix is suboptimal as it is too heavily weighted in gold. This concept describes what Dorothy suffers from?

Question

Sam Dunlap

Business

23 November, 09:32

Dorothy likes to invest in gold as part of her overall financial investment portfolio, as her gut tells her it will increase dramatically in value. Her favorite and only source of investment advice is Wizard's Gold Hour on the OZ cable channel. As a result of this advice, Dorothy's portfolio mix is suboptimal as it is too heavily weighted in gold. This concept describes what Dorothy suffers from?

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Answers (1)

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Cruz Knox · Answer 1

a confirmation bias

Explanation:

Based on the scenario being described within the question it can be said that this concept describes that Dorothy suffers from a confirmation bias. This is a type of cognitive bias in which an individual favors more information that supports or confirms other beliefs that they may have. As it is illustrated in this situation Dorothy likes to invest in gold and follows the OZ cable channel's advice because it supports her belief that gold will increase in value.