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Basic Question 6 of 7

Suppose Jamie make an investment in Stock ABC, and over the next six months, ABC appreciates by his target of 15%. Jamie contemplates selling but then comes across an item in the Financial Times that rehashes the company's recent successes and also sparks new optimism. Jamies wonders whether ABC could climb even higher. Given ABC's recent performance and the FT article, Jamies thinks: "I think I'll hold off and wait to see what happens. I'd really kick myself if I sold now and ABC continued to go up". This looks like a ______ scenario.

A. Loss-Aversion Bias
B. Overconfidence Bias
C. Regret-Aversion Bias

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Craig Baugh

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.