BF -- Big Picture Question

CFA Level III Portfolio Management
#1

From a big-picture perspective, is it fair to say BF has two consequences:

  1. Advisor must consider BF / biases in order to create an IPS and allocation strategy that is as optimal as possible.

  2. Investors who *are* rational don’t really have an advantage since BF can cause market prices to deviate from inherent values.

Anything else to add that doesn’t fall under the above two categories?

Thanks in advance!

#2

Both sounds logical to me but I haven’t seen the 2). neither in curriculum nor in schweser materials.