- CFA Exams
- CFA Level I Exam
- Topic 9. Portfolio Management
- Learning Module 5. The Behavioral Biases of Individuals
- Subject 2. Cognitive Errors
CFA Practice Question
A lawyer invests in companies which "remind" him of his most successful clients. This is most likely an example of which bias? A. representative bias
B. confirmation bias
C. framing bias
Correct Answer: A
It occurs when we perceive new knowledge as a repetition of previous experience. Subsequently, one categorizes new information based on previous prejudices, biases, experiences, and classifications.
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