an optimistic bias in their valuations, and tend to react with a delay to stock movements. The different measures of … uncertainty, financial stress and volatility affect their estimations a) fostering the optimistic bias, b) reducing the speed and …

status quo bias. We evaluated interest rate forecast series from twelve industrial nations. This revealed that, on average …Status quo bias is a systematic cognitive error which makes it difficult for individuals to make decisions …, forecasts were much too close to the status quo - the current interest rate at the time when the forecast was made. With the aid …

risk premia. The extent of this bias is substantial as verified by a bootstrap approach. We present an alternative …