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Basic Question 5 of 5
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 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.