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Basic Question 2 of 7

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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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

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.