The Behavioral Biases of Individuals

Which category of behavioral biases is primarily characterized by faulty cognitive reasoning?

Which type of behavioral bias is generally considered harder to correct or eliminate?

Conservatism bias is best described as a tendency to do which of the following?

In Bayesian terms, an investor exhibiting conservatism bias will tend to do what?

Which bias involves looking for and noticing what confirms prior beliefs while ignoring what contradicts them?

An employee holding a disproportionate amount of their investment assets in their employing company's stock due to a belief in its favorable prospects is an example of which bias?

Which of the following is a sub-type of Representativeness bias?

Sample-size neglect occurs when an investor does which of the following?

Which bias leads investors to believe they can influence outcomes when they actually cannot?

A common consequence of Illusion of Control bias is which of the following?

Hindsight bias refers to the tendency to view past events as having been:

Which question can help an investor overcome Hindsight bias?

Anchoring and Adjustment bias is classified as which type of bias?

In the context of Anchoring and Adjustment bias, individuals generally adjust their anchors:

Mental Accounting bias involves dividing money into accounts that:

A primary drawback of Mental Accounting is that:

Framing bias is an information-processing bias where a person answers a question differently based on:

Availability bias occurs when people estimate the probability of an outcome based on:

Which of the following is a source of Availability bias related to how closely a situation parallels a personal situation?

Loss-aversion bias leads people to typically:

A specific behavior resulting from loss aversion is:

Overconfidence bias is often intensified when combined with which other bias?

Which of the following is a common consequence of Overconfidence bias?

Self-control bias is characterized by a failure to:

Which bias explains why an investor might choose to do nothing rather than make a warranted change?

Endowment bias involves valuing an asset more when:

To detect Endowment bias regarding inherited securities, an advisor should ask:

Regret-aversion bias can cause investors to be:

Which market behavior is characterized by future price behavior correlating with the recent past?

In financial bubbles, investors often exhibit symptoms of which bias?

When a market bubble unwinds, under-reaction may occur because investors suffering from cognitive dissonance do what?

To overcome Confirmation bias, what should an investor actively seek?

Which bias is described as relying on an initial piece of information to make subsequent estimates?

Which of the following describes 'Narrow Range of Experience' as a source of Availability bias?

Which bias might cause an investor to irrationally bifurcate wealth into 'principal' and 'returns'?

Self-attribution bias leads people to:

Which of the following is a recommended method to overcome Overconfidence bias?

Regret-aversion bias has two dimensions regarding actions people take and:

Herding behavior is often a consequence of which bias?

Cognitive dissonance is the mental discomfort that occurs when:

Which bias results in 'Narrow frame of reference'—losing sight of the big picture?

Which of the following is a detection/overcoming strategy for Conservatism bias?

Which bias may cause an investor to misidentify their risk tolerance because of how the questions were asked?

The 'Disposition Effect' (selling winners, holding losers) is primarily a manifestation of which bias?

Which bias involves 'Prediction Overconfidence' and 'Certainty Overconfidence'?

What is a recommended strategy to mitigate Self-Control bias?

If an investor chooses an investment fund solely based on recent advertising or news coverage, they are likely exhibiting:

The tendency of investors to unknowingly maintain portfolios with risk characteristics inappropriate for their circumstances due to inertia is called:

Which bias is characterized by constructing financial models that are overly detailed, believing this manages uncertainty?

When assessing risk tolerance, financial market participants (FMPs) should quantify the risk-reducing advantages of diversification to overcome: