Behavioral finance terms terms

bchadwick

I have compiled a list of what I think are the most important behavioral finance errors that are likely to be tested. In the event that a list of choices is not provided on the exam, I will choose from this mental list.

I have been looking through old exams, and it seems that the CFAI has changed the terminology for various behavioral traits over the years, so I have excluded terms that do not appear in the current curriculum (e.g. recallability, reference dependence, mental accounting). Please feel free to post a modified version of this list.

- Representativeness
- Overconfidence
- Anchoring-and-adjustment
- Aversion to ambiguity
- Loss aversion
- Self-control
- Regret minimization
- Money illusion
- Pyramids
- Naive diversification
- Status quo bias
- Endorsement effect
- Familiarity bias
- Home bias



Edited 1 time(s). Last edit at Sunday, May 30, 2010 at 03:12PM by nedust.