Wang is overconfident about the information she has about Pharmitrol’s prospects and is making an unjustified bet. She doesn’t realize she doesn’t have all the information necessary to form an unbiased projection. Anchoring refers to the inability to fully incorporate (adjust) the impact of new information on projections. Familiarity is when investors invest in securities they are familiar with such as their own company’s stock or domestic versus international equities | 
