e point even though there may be no logical relevance Tulent to the issue in question. b. Conservatism or belief perseverance. c. Anchoring is fairly common in situations where decisions and customary. d. Anchoring is fairly common in situations wher new to the decision maker. 5. Which of the following are heuristics or cognitive biases about won in situations where decisions are being made that are repetitive w on in situations where decisions are being made that are novel of knowledgeable? ng are heuristics or cognitive biases about which an advisor shou a. The Affect Heuristic. b. Overreaction bias. c. Overconfidence bias. d. Anchoring. e. All of the above. ich of the following best completes this sentence: There has been a movement in recent times for the financial industry to be more in touch with _due to their effect and persuasiveness in financial matters. 1. Capital Asset pricing. 2. Beta. 3. Psychology and sociology. a. 3 only. b. 1 and 2. c. 1 and 3. d. None of the above. e. All of the above. 27. Which of the following best describes Behavioral Finance? a. Behavioral Finance concepts are more developed than Traditional Finance. b. Behavioral Finance streamlined financial data. Traditional Finance's introduction of scientific method into financial analysis has some benefit to Behavioral Finance. d. Behavioral Finance is very similar to Traditional Finance in its asset pricing models and portfolio theories. 28. Which of the following is inconsistent with respect to the gambler's fallacy? a. The gambler's fallacy has nothing to do with probabilities. b. When watching successive coin flips, if heads is the result successively, the belief is that the odds of that continuing to happen are lesser, and therefore it is a better probability to bet on tails. c. Because each flip of a coin is a separate action, the probability of the coin flip, using the gambler's fallacy, changes drastically from fifty (50%) percent. d. None of the above