Has anyone completed Reading 13-A Survey of Behavioral Finance (Barberis and Thaler)? It’s 50 pages long but with only 3 LOS which appear to be addressed early in the article. The remainder of the article summarizes recent behavioral finance studies and theories. Then it concludes that most of the current theories are probably wrong, and better ones will emerge. There are no problems attached to the article. If anyone has ideas on how this might be tested, I’d be interested in hearing about that…thanks! Not sure if this material has been tested before…
They can dream up any sort of question for the essays. E.g. they could describe a couple of investors and ask you to characterize their investing styles/shortcomings from a BF perspective.
… and one could still be wrong per CFAI after doing this 10 times over!!!
That’s funny I was reading this last night and was thinking the exact same thing. My understanding is that technically speaking the CFAI can ask you anything they can on the exam. LOS are more or less are being used as guides although I think that if you can answer the LOS you should be in a pretty good shape for the exam, so you can skip the 40 other pages that do not directly address the LOS in question without too much worry.