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Basic Question 1 of 7
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. |
You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu
Learning Outcome Statements
discuss commonly recognized behavioral biases and their implications for financial decision making
CFA® 2025 Level I Curriculum, Volume 6, Module 5.