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Basic Question 2 of 3

What is TRUE about Bubbles and Crashes?

I. Excessive trading and overconfidence contribute to a bubble.
II. Self-attribution bias is often evident in a quickly rising market.
III. When a bubble bursts, markets may underreact due to anchoring.

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

Learning Outcome Statements

describe how behavioral biases of investors can lead to market characteristics that may not be explained by traditional finance

CFA® 2024 Level I Curriculum, Volume 6, Module 5.