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Basic Question 4 of 5
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. |
I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
Learning Outcome Statements
describe behavioral finance and its potential relevance to understanding market anomalies
CFA® 2025 Level I Curriculum, Volume 3, Module 3.