passive preserver - endowment, loss aversion, status quo, regret aversion - emotion bias
friendly follower - availability, hindsight, framing bias - cognitive
independent individualist - conservatism, availability, confirmation, representative bias - cognitive
active accumulator - overconfidence, self control - emotional
The independent individualist is most difficult to understand, they are independent risk taker, they should not have conservatism bias
Well remember the BB&K model’s X and Y axis, Confident vs. Anxious, and Impetus vs. Cautious. The independent individualist will fall in the Confident and Cautious quadrant. Which I know is a bit confusing as you would think that if you are confident you wouldn’t be so conservative in your assessment of new info, but I guess the cautious attribute is how they justify conservatism for an independent individualist. I think this is why people dislike these behavioral classifications, they seem subjective at times, ironically it’s also one of their weaknesses lol.
What Victoryeo posted is not BB&K model. It would not be a problem to remember categorization if only one model existed. There are exactly 4 categorization models and is messy. Looks like someone made jokes.
hahaha good catch Flashback, I got confused between the Pompian and BB&K. There is also an individualist classification in BB&K and that threw me off. Honestly did a six hours full exam yesterday and my brain is still recovering. Usually after the real thing I’m out for 24 hours lol you might as well be talking to a brick wall.
I have noticed that my progress curve slowly but constantly become more and more flat. I suppose we are on similar stage. Next week since Wednesday I will only meditate and will not study any more.
Yup total plateau, progress has completely stalled for me. Now it’s essentially maintenance of concepts and ideas… I just hope it’s enough on exam day, especially since I’m not sure what more I can do at this stage. If I don’t make the cut, I don’t have any regrets in terms of effort, but it would be a bit baffling as I wouldn’t know how to tackle it a second time around with better results. Here’s to hoping for the best.
BB&K model - Bielard, Biehl and Kaiser five-way model ?? Is it in CFA curriculum?
^yes it is.
Got it . Thank you all.
Hi all,
Have you done Q7 of CFA 2017 PM Mock Exam? It relates to active accumulator’s behavioral biases. They say that this typ of investors exhibit emotional AND cognitive biases, which I found weird since I thought, like you Victoryeo, that it wouldnt be correct to fully classify them as active accumulator if they exhibit both biases. …'A is correct. Bailey is not exhibiting characteristics of multiple investor types. He is only exhibiting the investor characteristics associated with an Active Accumulator (AA) that include both cognitive and emotional biases…"
Thank you!