in Q3, Page 19, schweser V1 first morning exam Q3, it says the analyst resonates with wall street thought, I think it is confirmation bias not availabilty bias, anyone can clarify?
also the opposite to status quo bias, why is availabity bias?
Resonance is one of the sources of availability bias along with categorization, narrow range of experience, and recallability. It’s basically using information you can recall easily, resonates with you, etc as reasoning for a decision without really confirming that the information has sufficient basis.
The fact that resonance is explicitly stated should clue you in that it’s availability bias
I guess it can be considered the opposite of status quo bias because in status quo bias you fail to act despite having sufficient evidence to make a decision and just leaving your portfolio as is
no, I’m asking why confirmation bias is not correct? as I know, resonance means the wall street analyst confirm with the analyst thought, resonance clue me that it is confirmation bias.
Minor correction, no Recallability…its retrievability. FinNija suggested acronym as…CAN (Categorization) NEVER (narrow range of experiences) REALLY (Resonance) REMEMEBER (Retrievability)
Recallability is trap analyst fall into & discussed under CME section (ASCORP)
I do no have access to the question so I have no clue. What I can make out from above is…the analyst resonates with wall street may mean that I may have choosen Availability bias as answer…Beh Fin is the weakest area, so no clue how it can not be a confirmation bias.