Emotional Bias and Asset Allocation change

CFA Level III Portfolio Management
#1

In topic test Fischer Q5, the client has a high wealth level and a low standard-of-living risk. He is exhibiting emotional biases, specifically overconfidence and regret aversion. This combination suggests that a stronger asset allocation change may be warranted.

I remember emotional bias should be adapted to, so why strong asset allocation change is warranted for the client?

#2

This looks similar to the Renaldo case in the book.

Moore decides that the appropriate recommendation is to adapt to Mr. R’s biases and create a more aggressive portfolio that Mr. R can adhere to and be comfortable with. (Exhibit 9) and the answer is consistent with that …