CFA CFA Level 3 Question of the Week: Level 3 – Portfolio Management

Question of the Week: Level 3 – Portfolio Management

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    • MarkMeldrum
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      Seeing past events as having been predictable and reasonable to expect, is an example of:

      • A. hindsight bias.
      • B. confirmation bias.
      • C. conservatism bias.
    • MarkMeldrum
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      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.

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