Schwesers exam Book 1 Q 26

Here they talk about disposition effect- I thought disposition effect is when they cancel a same outcome- am I wrong?

You know how an aspect of loss aversion is holding onto losers too long and selling winners too quickly? That’s the disposition effect.

I think you’re thinking of the “six operations in the editing process,” one of which is “cancellation.”

Lol I had similar issues with disintermediation

There is another one called decision risk where they sell too quick and at peak of the loss

Yes. In the CFAI material, decision risk is in the context of private wealth clients investing in alternative investments.