2016年美国CPA练习题精选：Business 5

　　The strong belief that a manager's decisions and evaluations are correct, leading investors to overemphasize their abilities, is best characterized as：

　　a. Illusion of control

　　b. Confirmation bias

　　c. Overconfidence

　　d. Excessive optimism

　　答案：C

　　Explanation

　　Choice “c” is correct. The manager's belief that they are generally correct is overconfidence.

　　Choice “d” is incorrect. The manager's belief that results will generally be positive is excessive optimism.

　　Choice “b” is incorrect. Confirmation bias is when managers use data that confirms their conclusions and ignores data that challenges their ideas.

　　Choice “a” is incorrect. The erroneous belief that the financial manager has control over valuation outcomes that are really the result of market forces.