Diagnostic Question
Identify the behavioral bias that each
diagnostic question in Exhibit 1 is most
likely to reveal.
(circle one)
1. Would a prior investment decision that resulted
in a loss stop you from making a similar
decision, even if the new investment appears to
be the best alternative?
anchoring
hindsight
regret aversion
representativeness
status quo
2. How frequently do you review your investment
portfolio?
anchoring
hindsight
regret aversion
representativeness
status quo
3. Would you sell a recent equity investment
following a management announcement of a
significant decline in the expected growth rate of
revenue?
anchoring
hindsight
regret aversion
representativeness
status quo
