Question of the Week: Level 3 – Portfolio Management (5)

The correct answer is B:

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

Confirmation bias is a belief perseverance bias, in which people tend to look for and notice what confirms their beliefs and to ignore or undervalue what contradicts their beliefs.

Representativeness bias is a belief perseverance bias, in which people tend to classify new information based on past experiences and classifications.