susana

The behavioral finance stuff is a pain. It might help to know that the material was written by a few different authors, hence the cross over terms and different meanings. It's hard to keep all of this stuff in your head at once, but hopefully the real questions will be presented in a fairly straight forward manner. The past exam questions on this aren't that bad and typically list a number of behaviours and ask you to circle and justify rather than identifiy from scratch.

Status quo bias appears twice. From the DC pension perspective, it is that people are just too lazy to change whatever boxes they ticked on day 1 of their employment. This differs from the other use, in psychological traps (i think), where people just assume current events will continue.

Anchoring is more to do with your first opinion on something weighing more heavily despite new information.

One other comment re something above... Representativeness can be thought of as a 'good company' (ie, well managed, socially and ethically responsible, etc) not necessarily representing a 'good investment'.