Behavioral Finance Perspective Blue Box Example #3

Reading 7 page 41-42

Quite a convuluted process to wade through, if one were to actually perform all the necessary calcs.

I would like to think that the main objective on this reading would be to focus on areas that show up in the EOCs which appear to be more conceptual based understanding of the reading rather than burning up too much time making sure that one understands an example such as this one.

Would any retakers care to comment on this? I know I’ve heard to make sure and practice these blue boxes at this level in addition to the EOCs, but this particular example just begs the question… “My God man!!!”

i wouldn’t use a lot of time mastering behavioral finance. just know the main terms and what they mean. you should be able to identify a behavioral finance trait based on a given situation etc. that’s all.

I still don’t understand the Solution to this example. How did the author come up with such allocation? Could someone explain, please?

do the search … it has been discussed posted multiple times before please.

Thank you cpk123. I’ve found what I need in your old post. I’ll quote the answer here for those who haven’t found it.

The op doesn’t really have anything to do with “how to calculate”.