In the 2007 morning exam, there are psychological traps regarding prudence and recallability. I don’t see it in the 2010 cirriculum. did they change it?
I believe that prudence is mentioned in a reading other than behavorial finance (maybe Cap Mkt Expectations?) though it is pretty much the same as regret minimization, just a different term. Pretty sure recallability is also mentioned in somewhere in the curriculum, but it is a bias where one tends to recalls only their successful forecasts.
Correction - recallability is giving too much weight to past dramatic (usually negative) events. Just was reviewing Cap Markets Expectations and both are there.