CFA Latest CFA Level 1 Discussions 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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      A belief perseverance bias, in which people maintain their prior views or forecasts by inadequately incorporating new information, is known as:

      • confirmation bias.
      • conservatism bias.
      • representative bias.
    • MarkMeldrum
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      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.

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