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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 was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt

Learning Outcome Statements

describe behavioral finance and its potential relevance to understanding market anomalies

CFA® 2025 Level I Curriculum, Volume 3, Module 3.