Does anyone know what exactly these behavioral biases mean and are they covered in the curriculum? I was going through the 2006 paper and found these terms there. Is it that it was in the curriculum for 2006 only? The same goes for certificate deposits (CDs), there was one question on CDs. Are CDs covered in detail in curriculum? I didnt came across these behavioral biases and CDs during my preparation.
These aren’t in the LOS anymore.
thanks to both you guys. much appreciated!
I have seen the house money effect many times in my life.
Gauravku, this the reason why CFA institute took out old exams.
I believe house money effect is mentioned at some point in the curriculum, no?
Snake Bite is when you consistenly screw up despite your best efforts. House Money - HELOC
JustPass Wrote: ------------------------------------------------------- > House Money - HELOC LOL!
House money effect takes place when an investor has seen a nice run in their investment, so they feel they are no playing with “house money” so their risk aversion decreases which lowers their equity premium. Can’t find anything on the Snakebite effect.
Thanks a lot guys…