- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 5. The Behavioral Biases of Individuals
- Subject 4. How Behavioral Finance Influences Market Behavior
CFA Practice Question
Regret is often a manifestation of ______ bias.
B. hindsight
C. loss aversion
A. conservatism
B. hindsight
C. loss aversion
Correct Answer: B
Regret reflects the human predisposition to see past events as foreseeable. Thanks to regret, investors may feel an overwhelming urge to act emotionally not to miss out on the next big momentum play.
User Contributed Comments 0
You need to log in first to add your comment.