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Basic Question 0 of 14
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 was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt
Learning Outcome Statements
identify the factors that determine the value of an option and describe how each factor affects the value of an option
CFA® 2025 Level I Curriculum, Volume 5, Module 8.