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Basic Question 2 of 7

An investor is asked to choose between:
A. An assured loss of $400
B. A 50% chance of losing $1,000 and a 50% chance of losing nothing
The investor chooses option B.

It's likely the investor is exhibiting:

A. no bias
B. loss-aversion bias
C. over-confidence bias

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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu

Edward Liu

Learning Outcome Statements

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

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