2012 Morning Session - Behavioral Finance question - 4 A
so the question looked easy but the answer was far from what i expected.
can you have a look at it and tell me what you think:
The question is as follows:
Identify the behavioral bias that each diagnostic question is most likely to reveal. Choice is between anchoring, hindsight, regret aversion, representativeness and status quo
Would you sell a recent equity investment
following a management announcement of a
significant decline in the expected growth rate of
for me the answer was Staus Quo - the client will not change his position even if he recieves negative information about his asset.
the exam solution was - Anchoring.
both answers can work don’t you think?
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