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Basic Question 3 of 5
An equity analyst working for a growth-oriented mutual fund has a tendency to misvalue the stocks of popular companies that she has previously recommended and the fund already owns. Her behavior is most likely consistent with which of the following biases?
B. Prospect theory
C. Confirmation bias
A. Escalation bias
B. Prospect theory
C. Confirmation bias
User Contributed Comments 2
| User | Comment |
|---|---|
| praj24 | Bad analyst! You should be ashamed of yourself |
| Inaganti6 | Right now everyone covering Tesla is prone to this because of their god Elon musj |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
describe behavioral finance and its potential relevance to understanding market anomalies
CFA® 2025 Level I Curriculum, Volume 3, Module 3.