behavior trait of excluding investment forever

CFA Level III
#1

if Individual had previous loss in the energy sector and does not want to invest in it anymore due to bad memory. What behavioral trait is that?

#2

Recallability

#3

^cosign there. nice work.

#4

Isn’t recallability a trap where you put too much weight in your forecasting on previous disasterous events?

#5

couldnt regreat also be an answer?

#6

I don’t thing that there is a behavioral bias for that one. Maybe its simply that the investor is cautious. Im just trying to think of scenarios for the exam… It could be regret minimization. But this is only when you stay in comfortable investments or don’t sell profitable ones cause they might go higher and you don’t want to feel the regret of missing out on it.

#7

regret is more staying in comfortable investments too long. also with regret you’d tend to pay your expenses with dividends/interest (similar to self control). 100% recallability here FTW.

#8

I don’t thing that there is a behavioral bias for that one. Maybe its simply that the investor is cautious. Im just trying to think of scenarios for the exam… It could be regret minimization. But this is only when you stay in comfortable investments or don’t sell profitable ones cause they might go higher and you don’t want to feel the regret of missing out on it. Its not recallability as recallability is a FORECASTING mistake. Nothing to do with individual investor behavioral bias.

#9

I am going with snake bite.

#10

Regret minimalization. While they are very similar ideas, the recallability trap relates to forecasters, not individual investors.

#11

is snake bite in the 2011 curriculum?!?

#12

recallibility is forecasting secret sauce calls this regret minimization, just looked it up

#13

smileygladhands Wrote: ------------------------------------------------------- > recallibility is forecasting > > secret sauce calls this regret minimization, just > looked it up I think they also said it is impossible to get one wrong from using answers in forecasting in behavioral finance, so I am not sure.

#14

is snake bite in the 2011 curriculum?!??

#15

charly_blue Wrote: ------------------------------------------------------- > is snake bite in the 2011 curriculum??? I am not sure it is on a test from 2002.

#16

You’re a machine Paraguay. Analyst forum would not have been that awesome without you this year. Which city you writing the exam in?

#17

Snake bite isn’t even in this year’s curriculum.