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NEW QUESTION: 1
Section B (2 Mark)
If an investor determines that next year's earnings estimate is Rs2.00 per share and the company subsequently falters, the investor may not readjust the Rs2.00 figure enough to reflect the change because he or she is
"anchored" to the Rs2.00 figure. This is not limited to downside adjustments-the same phenomenon occurs when companies have upside surprises Which of the following Biases have been exhibited by the investor?
A. Framing bias
B. Loss Aversion bias
C. Anchoring and Adjustment Bias
D. Representative bias
Answer: C

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