Q7 of CFA 2017 PM Mock Exam

Hi all,

Have you done Q7 of CFA 2017 PM Mock Exam? It relates to active accumulator’s behavioral biases. They say that this type of investors exhibit emotional AND cognitive biases, which I found weird since I thought, like you Victoryeo, that it wouldnt be correct to fully classify them as active accumulator if they exhibit both biases.

…’A is correct. Bailey is not exhibiting characteristics of multiple investor types. He is only exhibiting the investor characteristics associated with an Active Accumulator (AA) that include both cognitive and emotional biases…”

Thank you!

***please ignore the ‘like you Victoryeo’ and thanks in advance for your responses. Key point here: I thought AA exhibit only emotional biases…

Each investor type may exhibit both cognitive and emotional biases. AA may have emotional biases as dominated. Regarding this question I failed this one, too:)

Hi flashback, thanks again for answering! So I guess if in the exam they say for instance that the individual has a ‘very conservative investment style’ and he exhibits mainly cognitive biases we would not say that he is a passive preserver but rather has characteristics of multiple investor types, right?

I don’t know in what form it may appear on exam. What I know the questions and facts are very clear on past AM papers.