The current behavioral finance readings were introduced in 2012. There has been at least one behavioral question on the essay exam every year since then. It is essential that you know the biases and their implications. The table below summarizes what was tested between 2012 and 2015.
|
Year
|
Q#
|
Concepts tested
|
|
2015
|
11
|
Regret aversion, loss aversion, mental accounting, framing biases
|
|
2014
|
11
|
Availability, endowment, framing, regret aversion, representativeness, self-control; moderating versus adapting to biases
|
|
2013
|
3
|
Friedman-Savage utility function, behavioral biases, behavioral portfolio theory vs mean-variance framework
|
|
2012
|
4
|
Anchoring, hindsight, regret aversion, representativeness, status quo, conservatism, endowment, mental accounting, illusion of control; recognize which biases are cognitive versus emotional; moderating versus adapting to biases
|