SS#3 Dartboard

CFA Level III Portfolio Management
#1

After reviewing SS# 3 today, here are my best guesses for what’s most likely to be tested:

* Rational Man = concave utility

* Bayes Formula

* Satisfice / Bounded Rationality

* Representativeness Bias = sample size neglect

* Mental Accounting Bias = ignores correlations

* Overconfidence = narrow bands, leads to excessive trading and concentrated portfolios

* Loss Aversion Bias(disposition effect) = place more value on losses; sell winners too soon and hold losers too long

* Pompian Model types

#2

I hope someone can post a strategy to handle Pompian Exhibit. (P-117) 1, List of biases for Passive Preserver? 2, How to mitigate each bias?