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LOS d: Define behavioral finance and describe prospect theory, over-confidence bias, confirmation bias, and escalation bias.
Q1. The tendency to commit additional funds to a position that has decreased in value is known in behavioral finance as:
A) confirmation bias.
B) overconfidence bias.
C) escalation bias.
Q2. In behavioral finance, the tendency to seek out good news and ignore bad news is called:
A) confirmation bias.
B) escalation bias.
C) overconfidence bias.
Q3. With respect to behavioral finance, the tendency to place too much faith in an earnings forecast is known as:
A) overconfidence bias.
B) anchoring.
C) confirmation bias.
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发表于 2009-3-2 13:30
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