Emotional Bias

Question 1

Status quo bias is:

Answer 1

Do nothing.
Endowment
Regret aversion biases

Question 2

Market Bubbles emotional biases (3)

Answer 2

1. Overconfidence (excess trading)
2. Confirmation (ignore new information)
3. Anchoring (recents high are rational price)

Question 3

Endowment Bias

Answer 3

Value an asset more when you have it.

Price needs to be equal of what would be willing to sell

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Consequences

Fail to sell certain and replace to others

Continue to hold assets with wich they are familiar

Inappropriate asset allocation