IFIC Chapter 5 questions with verified
answers already passed
Which of the following is not a theory of standard finance?
a. investors are risk averse
b. investors are rational in their decision making
c. can be risk or risk seeking depending on situation - correct answer ✔✔c
In the investment world, _______ are defined as systematic errors in financial judgment or
imperfections in the perception of economic reality . These fall into 2 categories: ___ & ____ -
correct answer ✔✔behavioural biases
cognitive biases
emotional biases
Which of the following is FALSE?
a. women are more susceptible to emotional biases
b. men are more overconfident than women
c. women are more likely to buy and hold
d. women are one-third more risk tolerant than men - correct answer ✔✔D
List the 4 biases men are susceptible to: - correct answer ✔✔1. Overconfidence (cognitive)
2. Loss aversion (emotional)
3. Availability bias (cognitive)
4. Cognitive dissonance (cognitive)
answers already passed
Which of the following is not a theory of standard finance?
a. investors are risk averse
b. investors are rational in their decision making
c. can be risk or risk seeking depending on situation - correct answer ✔✔c
In the investment world, _______ are defined as systematic errors in financial judgment or
imperfections in the perception of economic reality . These fall into 2 categories: ___ & ____ -
correct answer ✔✔behavioural biases
cognitive biases
emotional biases
Which of the following is FALSE?
a. women are more susceptible to emotional biases
b. men are more overconfident than women
c. women are more likely to buy and hold
d. women are one-third more risk tolerant than men - correct answer ✔✔D
List the 4 biases men are susceptible to: - correct answer ✔✔1. Overconfidence (cognitive)
2. Loss aversion (emotional)
3. Availability bias (cognitive)
4. Cognitive dissonance (cognitive)
