Cognitive Biases

[derswap07]

CFAI past 2013 exam Q 4 part A.- they ask-Identify two cognitive biases exhibited by Stoffer.
In the answer they have picked mental accounting. It is an emotional and not cognitive bias according to me. What am I missing here?

 

[janakisri]

Are you asking if mental accounting is indeed a cognitive bias ? Yes it is . Definitely it is not emotional bias.

 

[krazykanuck]

^ I’m pretty sure CFAI doesn’t care that its an emotional bias according to you.

 

[Swaption11]

FAMA Cognititve biases (Like Eugene Fama, a real smart guy) information processing, LOSERS emotional biases.CRICH Cognitive belief perseverance.

 

[derswap07]

Thanks guys-I see it now.