What is Base Rate Fallacy?

Abhijeet Modi/ August 30, 2021/ Blog

Base rate fallacy, commonly known as the base rate bias or base rate neglect, is an extremely widespread form of financial philosophy. People tend to completely ignore the established average interest rate favoring the latest, most accurate information, and completely disregard the base interest rate’s influence. In reality, the interest rate should be considered along with other factors when formulating

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