Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 1 of 7
An investor is asked to choose between:
A. An assured gain of $400
B. A 25% chance of gaining $2,000 and a 75% chance of gaining nothing
The investor chooses option A.
It's likely the investor is exhibiting: A. no bias
B. loss-aversion bias
C. over-confidence bias
User Contributed Comments 1
| User | Comment |
|---|---|
| thevinu | How is it loss-aversion when the investor is not going to make any loss. |
Thanks again for your wonderful site ... it definitely made the difference.
Craig Baugh
Learning Outcome Statements
discuss commonly recognized behavioral biases and their implications for financial decision making
CFA® 2024 Level I Curriculum, Volume 6, Module 5.