Behavioral Finance and Investor Bias | CFA Level 1 Exam Prep

Understanding Behavioral Finance and Investor Bias

Prev Question Next Question

Which of the following is the least accurate description of behavioral finance and related investor bias?

A. Avoiding or ignoring new information that would call a decision into question is an example of overconfidence bias.

B. Behavioral finance may explain some of the anomalies that tend to refute the efficient markets hypothesis.

C. Committing more funds to a position that has lost value is an example of escalation bias. A

Click on the arrows to vote for the correct answer

A. B. C.

Prev Question Next Question