CFP Exam Study Guide
Verified Exam Questions and Answers Latest update 2026/2027
Question:
Accepting information that confirms preconceived ideas and rejecting information
that does not
Answer:
Question:
[Conformation Bias
Answer:
Question:
Diversifying evenly across all available options even if this is not the best course of
action
Answer:
Question:
Diversification Errors
Answer:
Question:
Fear of Regret
Answer:
Taking no action instead of risking taking the wrong one
Question:
Erroneously believing that one event means that another one has to happen
Answer:
, Question:
'Gambler's Fallacy
(roulette theory of it has been red the last 5 times so it is bound to be black this time)
'Herd Behavior
Hindsight Bias
| Inappropriate Extrapolation
Analysis Paralysis
Being risk averse when it comes to gains (realizing them to avoid giving them up) but
'Loss Aversion & Risk Taking
have a loss)
| Losses having a much larger negative affect than gains do a positive affect (ex. losing
rospect Theory ;
$50 feels worse then winning $50, but they are the same in reality)
Mental Accounting
Making decisions based on a desired outcome rather than probability of that
(Outcome Bias
outcome
ical inca Placing too much emphasis on one's own abilities
- Emotionally reacting harshly in one way or another to new market news or
(Overreaction
conditions
Recency Bias
The belief that when somethi joes right, it is bec
lear trennaitor ies a ing g ig t itis because inve: or was smart an
made the right decision, but when something goes wrong, it isn't their fault
Making decisions based on purely coincidental trends of two outcomes occurring at
Spotting trends that are not there
the same time that are totally uncorrelated
a Quo Bias
|
include:
'Money Scripts Money Avoidance
Money Worship
Money Vigilance
Money Status
Money Avoidance
Money Worship
Money Vigilance
Money Status
Verified Exam Questions and Answers Latest update 2026/2027
Question:
Accepting information that confirms preconceived ideas and rejecting information
that does not
Answer:
Question:
[Conformation Bias
Answer:
Question:
Diversifying evenly across all available options even if this is not the best course of
action
Answer:
Question:
Diversification Errors
Answer:
Question:
Fear of Regret
Answer:
Taking no action instead of risking taking the wrong one
Question:
Erroneously believing that one event means that another one has to happen
Answer:
, Question:
'Gambler's Fallacy
(roulette theory of it has been red the last 5 times so it is bound to be black this time)
'Herd Behavior
Hindsight Bias
| Inappropriate Extrapolation
Analysis Paralysis
Being risk averse when it comes to gains (realizing them to avoid giving them up) but
'Loss Aversion & Risk Taking
have a loss)
| Losses having a much larger negative affect than gains do a positive affect (ex. losing
rospect Theory ;
$50 feels worse then winning $50, but they are the same in reality)
Mental Accounting
Making decisions based on a desired outcome rather than probability of that
(Outcome Bias
outcome
ical inca Placing too much emphasis on one's own abilities
- Emotionally reacting harshly in one way or another to new market news or
(Overreaction
conditions
Recency Bias
The belief that when somethi joes right, it is bec
lear trennaitor ies a ing g ig t itis because inve: or was smart an
made the right decision, but when something goes wrong, it isn't their fault
Making decisions based on purely coincidental trends of two outcomes occurring at
Spotting trends that are not there
the same time that are totally uncorrelated
a Quo Bias
|
include:
'Money Scripts Money Avoidance
Money Worship
Money Vigilance
Money Status
Money Avoidance
Money Worship
Money Vigilance
Money Status
