Understanding and Addressing Overconfidence Bias in Wealth Management

As a wealth manager, you have a client who exhibits behaviors consistent with overconfidence bias. Despite receiving consistent advice to diversify their portfolio, the client insists on holding a concentrated position in a single stock, believing it will outperform the market.

In your response, discuss the implications of overconfidence bias in wealth management and suggest strategies you could implement to help the client make more informed investment decisions. Use specific examples to illustrate your points.