QUESTION 47

1. Which of the following investors is more likely to engage in overconfidence bias?

   		a. A pension fund manager operating within strict portfolio allocation requirements.
   		b. A novice investor allocating the majority of their funds to index investing.
   		c. An investor with a few years' experience selecting stocks after examining the risk and return expectations of several stocks.
   		d. A fund manager with several years' experience outperforming the market.

QUESTION 48

1. Which of the following behavioral finance errors does research indicate are likely to be made by professional money managers? (1) Herding. (2) Confirmation bias. (3) Overconfidence bias. (4) Mental accounting.

   		a. 1 and 2.
   		b. 1 and 4.
   		c. 1 and 3.
   		d. 1, 2 and 3.