BF Chapter 3

Which of the following biases best describe the given picture?

• Herding bias

• Framing bias

• Recency bias

• Over confidence bias

Which of the following is less related to information processing bias?

• Regret Aversion

• Framing

• Anchoring

• Recency

Suppose a friend inform you that as per the suggestion of a broker, his investment in 3 companies generate good return to you over last 6 months. If you follow the same broker and invest on the same companies, which of the following best describes your brassiness?

• Illusion of control

• Recency bias

• Herding bias

• Representative bias

Which of the following biases is likely to create bubble in stock market?

• Herding bias

• Media response bias

• Optimism bias

• Mental accounting bias

Single men trade far more often than women. This is due to greater ________ among men.

• framing

• overconfidence

• regret avoidance

• conservatism

Which of the following least help to overcome the biases during your investment decision making?

• Having a written investment plan

• Diversifying portfolio

• Have a goal to earn the market return

• Try to find out under valued stocks to purchase

Which of the following best describes "Media Response Bias"?

• Excessive buying and selling on the basis of herding information

• Trying to relate every bit of information of a company with its market price

• Ignoring all the information related to company and only investing on the basis of market trend

• Having very less knowledge about the market and just believing on media news

Suppose an investor purchase a stock at Rs. 500 with a hope it will increase in few days. But in the market, the stock price decreased to 450 and is still in decreasing trend. If the investor waits for months or even years to regain the price and then sells when the price touches Rs. 500. Which of the following describe this situation?

• Disposition effect

• Herding effect

• Framing effect

• Recency bias effect

"We were originally designed to get more of whatever would improve our odds of survival and to avoid whatever would worsen them." Which of the following describe the given statement?

• Optimism bias

• Availability bias

• Framing bias

• Mental accounting bias

Which of the following least influence overconfidence?

• Base rate

• Information

• Locus of uncertainty

• Government policy