Question of the Week: Level 3 – Portfolio Management (4)

The correct answer is Option A.

With a hindsight bias, people may see past events as having been predictable and reasonable to expect.

With a confirmation bias, people generally place excessive weight on confirmatory information; that is, they place greater weight on information that supports their beliefs.

Conservatism bias is a belief perseverance bias, in which people maintain their prior views or forecasts by inadequately incorporating new information.