Question

Against his financial advisor’s advice, Frank has decided to invest his money in some risky stocks because he once made quite a bit of money in the stock market. His decision illustrates __________.

Answer 1

Representative Heuristic

Step-by-step explanation:

Representative heuristic is a psychological situation in which an individual takes a bias deecison based on the prototype of that same situation.

From the question, it can be seen that Frank is investing in a risky stock at this time because it once made him money in the past. He's basing the success of the stock this time around on his past experience.

Cheers.