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An equity analyst working for a growth oriented mutual fund has a tendency to misvalue the stocks of popular companies that she has?

 previously recommended and the fund already owns.

 

Her behavior is most likely consistent with which of the following biases?

 

A. Escalation bias   B. Prospect theory   C. Confirmation bias

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Question added by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies
Date Posted: 2015/07/04
Upvote (2) Views (1) Followers (4) Answers (4) Report Question
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Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Yes, option C is the right answer.

Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

C. Confirmation bias =================

lakshminarasimham mallareddi
by lakshminarasimham mallareddi , Manager Finance & Accounts , M/s. Vandana Global Limited, Raipur, Chhattisgarh

Correct Answer is A. Escalation bias if she has a tendency to mis -value the stocks of popular companies.

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

A----------------------------------------

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