can someone just confirm what it is ? thanks
the correct answer to that question:)
when you buy stock, it drops in price, and you buy more, thinking that now itās a bargain. itās averaging down, as opposed to thinking you made a mistake purchasing in the first place and selling
What were the other choices? I vaguely remember that question.
willispierre Wrote: ------------------------------------------------------- > the correct answer to that question:) BEST answer thanks eric I donāt remember the other choices (btw r u French ??)
hahaā¦ i donāt remember it either but yes thats the correct ans
escalation bias survivorship bias ā¦ not sure of the other 2
DāArtagnan Wrote: ------------------------------------------------------- > willispierre Wrote: > -------------------------------------------------- > ----- > > the correct answer to that question:) > > > BEST answer thanks > > eric I donāt remember the other choices (btw r u > French ??) No, Iām from California. What the hell? Whereād you get French from?
comfirmation bias
eric23 Wrote: ------------------------------------------------------- > DāArtagnan Wrote: > -------------------------------------------------- > ----- > > willispierre Wrote: > > > -------------------------------------------------- > > > ----- > > > the correct answer to that question:) > > > > > > BEST answer thanks > > > > eric I donāt remember the other choices (btw r > u > > French ??) > > > No, Iām from California. What the hell? Whereād > you get French from? hahahaahahahaahhahaahaha. ok sorry.
confirmation is when you ignore the market signs that tell you, that you made a bad decision Escalation is when you cough out more money into already bad position. I might be wrong but I marked escalation
Never heard of it, but I thought comfirmation bias described his action.
this was almost verbatim off of the mock i think
Agreed, completely off the mock. Escalation.
i am not discussing any question in specificā¦ (to be on the safer side) but when you put in more money into a already unprofitable position itās akin to averaging the purchase price down, a feature pertaining to escalation bias. Confirmation bias IMO deals solely with opinions and seeking out info to get them āconfirmedā rather than see the info that contradicts.
> > > No, Iām from California. What the hell? Whereād > you get French from? it is a French rooted name, very commonly used here
i put confidence
This q was on one of the CFA mocks as well as the real test. Wouldnāt have gotten it if I didnāt take the mock.
overconfidence biasā¦
the way i remember it is if the position is going down you believe so much in it that you āescalateā (raise) your position. so escalation bias