Cognitive or emotional Bias

It’s from Schweser mock exam 1. Does client has congnitve or emotioanl bais? I thought it’s congnitive bias because client shows the illustion of control (he believes personal role at the company led to the large increase in value of his stock options). However, schweser solution shows emotianal bais… What do you think?

"PM learned his client was a middle-level corporate finance executive for a large corporation. The client is 55 years old, and his wife is 52. Both are in good health. In the meeting the client spent considerable time bragging about the successful strategies used in the corporation and how his personal role at the company led to the large increase in value of his stock options. When the corporation began to pursue international diversification, the client shifted a large part of his wealth into emerging market funds and tripled his money. He then further leveraged these gains with call options. He expects Simms to continue these excellent returns. "

I would definetly put this under self-attribution, which is nested somewhere under overconfidence. The fact that he feels proud and braggy about his performance is an indicator that you are dealing with an emotional bias. Under illusion of self-control, the prompt would read something like , “the client thinks that his personal role in the company contributes to its success”

^ Good point. Thanks!

yeah, I just read that real quick and thought that guy’s cocky as hell. so I would go to overconfidence

I can see the potential hang up you had in thinking illusion of control, in regard to thinking we affected the company stock price - as a middle level guy, but if we look further…

he shifts his money into international stocks because the company did, and a large part at that…via options = overconfidence

expects the returns to continue - after he tripled his money…ok guy. = overconfidence