How much would you write for this behavioural finance Q

CFA Level III Portfolio Management
#1

If the question asks you to identify the bias, based on case facts, and then asks you to - justify each identified bias with one example ?

Does it mean - Definittion of the bias, followed by case facts where this was demonstrated?

I have been writing the latter i.e. writing the name of the bias and highlighting the case fact but not sure if this is the right approach.

#2

I name the bias and write down where it’s coming from in the case then follow it up with why the example is the bias.

#3

Thanks Galli. Would you even write “why” ? Its something very good to have but not sure in the context of morning exam, as they seem to ignore anything that is extra.

#4

i would explain the why just so the marker knows exactly what i mean. I feel like if I only wrote ‘investor exhibits X becauase he did Y’, I won’t get full marks

#5

4 minutes with 2 biases - probably not

6 minutes with 2 or more - yes

#6

^ I agree. L3 is meant to also test judgement so i think it depends on each case (ie given the marks available etc)