What the hell is with that question?
Q. Based on Yang’s observations, which of the following would least likely limit the applicability of behavioral models to Bailey?
- Presenting both cognitive and emotional biases
- Exhibiting behavioral changes as he ages
- Displaying characteristics of multiple investor types
Solution
C is correct. Bailey is not exhibiting characteristics of multiple investor types. He is only exhibiting the investor characteristics associated with an active accumulator (AA), which include both cognitive and emotional biases. He is also exhibiting behavioral changes as he is aging: He has become more emotional about his investment portfolio.
A is incorrect because bailey is exhibiting both cognitive and emotional biases. Bailey is only exhibiting characteristics of an Active Accumulator (AA) which includes both biases.
B is incorrect because bailey is exhibiting behavioral changes as he is aging because he has become more emotional about his investment portfolio.
If active accumulator include both cognitive and emotional biases, and this limit the applicability of behavioral models (in fact answer A is wrong, then also answer C is wrong
Don’t understand what they want whit this question…really.