- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 5. The Behavioral Biases of Individuals
- Subject 3. Emotional Biases
CFA Practice Question
The most UNLIKELY bias that may cause excessive trading is: A. Representativeness Bias
B. Loss-Aversion Bias
C. Overconfidence Bias
D. Status Quo Bias
Correct Answer: D
Status quo bias is exhibited by investors who avoid making any changes to one's portfolio. The other three biases can cause excessive trading.
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