Q1

Question 1

If given a choice between two possibilities this will select one that will result in assure gain

Answer 1

Rational Actors

Question 2

In the graphic representation of b b and k 5 way model this type of investor is shown in the impetuous and anxious

Answer 2

Celebrity

Question 3

This bit was concerned with their families and the next generations future

Answer 3

Passive preserver

Question 4

The possession of property rights over an asset increases its value in the eyes of those who display this bias

Answer 4

Endowment bias

Question 5

Are issued by borrowers to get capital from lenders prepared to extend loans to them for a predetermined period of time

Answer 5

Bonds

Question 6

A financial contract whose value is based on a price that has already been agreed upon by two parties

Answer 6

Derivatives

Question 7

This investor take part in creation of their wealth

Answer 7

Active investor

Question 8

This theory describes how individuals evaluate gains and losses

Answer 8

Prospect theory

Question 9

This people are willing to put it all on one bed and go for it because they have confidence

Answer 9

Adventurer

Question 10

In this bias you only remember details that uphold your belief

Answer 10

Confirmation bias

Question 11

A bias where the subjective confidence of your assumptions is greater than the objective accuracy

Answer 11

Overconfidence bias

Question 12

This psychographic model was intended to help investment advisors interface with clients

Answer 12

Barnewall Two Way Model

Question 13

It is the belief that you are better than the other people it involves comparing yourself to others and with regards to a skill or ability

Answer 13

Over placement

Question 14

In the graphic representation of bb&t five-way model this type of investors are so well balanced so they cannot be placed in any specific quadrants so they fall near the center

Answer 14

Straight arrow

Question 15

This bit has a reputation of being a contrarian and frequently trust their guts

Answer 15

Independent individualist

Question 16

In the graphic representation of baby and k5 way model this type of investor is shown to be careful and confident

Answer 16

Individualist

Question 17

The belief that you are better at something then the reality of your skills or abilities would indicate

Answer 17

Overestimation

Question 18

The two key circumstances in which endowment bias tends to affect investors

Answer 18

Inherited securities purchased securities

Question 19

This bias is the tendency to persuade ourselves of the things that we want to believe

Answer 19

Confirmation bias

Question 20

A confident person thinks that they are still in the process of learning

Answer 20

True

Question 21

E guardian type investor prefers bonds real estate and gold as investment

Answer 21

False, pension funds

Question 22

Even when given a probability distribution of returns investors may make inconsistent or sub-optimal decisions

Answer 22

True

Question 23

The practice of applying psychology to financial matters is known as behavioral finance

Answer 23

True

Question 24

Men are more confident in their financial decisions than women according to study of barber and odean

Answer 24

True

Question 25

A confident person believes that he is consistently correct

Answer 25

Overconfident

Question 26

The notion that you do not need to learn because you are proficient is one result of the confirmation bias

Answer 26

Overconfidence

Question 27

The passive investors investment approach or style is conservative to aggressive

Answer 27

Moderate

Question 28

Endowment bias is inconsistent with classical economic theory

Answer 28

Standard

Question 29

According to mere statman people in traditional finance are irrational

Answer 29

Rationale