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Question of the Week: Level 3 - Portfolio Management

A belief perseverance bias, in which people maintain their prior views or forecasts by inadequately incorporating new information, is known as:

Question of the Week: Level 3 - Portfolio Management 5 votes

confirmation bias.
40% 2 votes
conservatism bias.
40% 2 votes
representative bias.
20% 1 vote

Comments

  • MarkMeldrumMarkMeldrum OntarioPosts: 28 Associate

    The correct answer is B:


    Conservatism bias is a belief perseverance bias, in which people maintain their prior views or forecasts by inadequately incorporating new information.

    Confirmation bias is a belief perseverance bias, in which people tend to look for and notice what confirms their beliefs and to ignore or undervalue what contradicts their beliefs.

    Representativeness bias is a belief perseverance bias, in which people tend to classify new information based on past experiences and classifications.

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