Reading 8 EOC question (Q6)

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sachin_patel

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This is Patel’s comment:
Patel indicated that his risk tolerance would increase significantly if he knew that an investment had the unanimous support of Garnier’s Private Wealth Investment Committee.

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My answer was C (the comment fails to recognize Gambler’s fallacy).
But the textbook answer is social proof.
I don’t understand their explanation. Any better explanation?
Thanks
 
Patel: is this one about you?
Social proof means endorsement from a large group. That’s what’s happening here.
What makes you think it’s a gambler’s fallacy?
 
^Unnecessarily guessing it’s the least likely possible answer.
 
the question says it “fails” to recognize a bias..which is confusing to me..
I guess I didn’t understand the question properly.
I did understand that the comment “represents” social proof bias..
 
Absolutely, RTFQ is the first rule of CFA club that we can talk about!
 
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