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Basic Question 3 of 5
An equity analyst working for a growth-oriented mutual fund has a tendency to misvalue the stocks of popular companies that she has previously recommended and the fund already owns. Her behavior is most likely consistent with which of the following biases?
B. Prospect theory
C. Confirmation bias
A. Escalation bias
B. Prospect theory
C. Confirmation bias
User Contributed Comments 2
| User | Comment |
|---|---|
| praj24 | Bad analyst! You should be ashamed of yourself |
| Inaganti6 | Right now everyone covering Tesla is prone to this because of their god Elon musj |
I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
describe behavioral finance and its potential relevance to understanding market anomalies
CFA® 2024 Level I Curriculum, Volume 3, Module 3.