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Basic Question 4 of 7

After extended periods of positive earnings, analysts expect this trend to continue even after companies begin to report disappointing results (and, presumably, there are objective reasons to expect this trend to continue). This is known as:

A. conservatism bias
B. confirmation bias
C. availability bias

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

discuss commonly recognized behavioral biases and their implications for financial decision making

CFA® 2025 Level I Curriculum, Volume 6, Module 5.