All, I sat for L1 2 years ago and there was a term in the studying: someone has lost a lot of money in an investment and puts more money in to bring down the average cost to help them feel better?
Anybody remember what that's called?作者: leadcfa 时间: 2011-7-11 18:30
I think you're referring to ESCALATION BIAS
I'll never forget this term because it always seemed funny to me since escalation seems to imply UP while the main idea behind the term is that you are averaging DOWN...
