C
Canuck_Act
Member
Hello all!
I have some question re the info in the SA 7 course notes, as follows:
Q1) The "Loss aversion" bias seems to be what was called "prospect theory" bias in subject ST 5, is that a correct assumption?
It does not appear to be "myopic loss aversion", since multi periods are not mentioned.
Q2) From subject ST 5, we learn that both confimation bias (CB) and hindsight bias (HB) are sub-categories of the overconfidence bias. I am okay with that, and the SA 7 notes also confirm this, but the new SA 7 notes mention that overconfidence is an emotional bias whereas both CB and HB are cognitive biases. Does anyone not find it odd, given the distinction between emotional and cognitive biases?
In a similar vein, prospect theory, could be classified as a sub-category of "Framing and question wording", since it relies on the way the value is framed (ie as either a gain or a loss relative to the reference point), but the SA 7 notes have loss aversion as an emotional bias and framing as a cognitive bias?
Q3) If I find the ST 5 course notes easier to follow, then, provided there is no contradiction with core notes, is it acceptable to use the definitions from the st 5 notes for the SA 7 exam?
Thank you.
I have some question re the info in the SA 7 course notes, as follows:
Q1) The "Loss aversion" bias seems to be what was called "prospect theory" bias in subject ST 5, is that a correct assumption?
It does not appear to be "myopic loss aversion", since multi periods are not mentioned.
Q2) From subject ST 5, we learn that both confimation bias (CB) and hindsight bias (HB) are sub-categories of the overconfidence bias. I am okay with that, and the SA 7 notes also confirm this, but the new SA 7 notes mention that overconfidence is an emotional bias whereas both CB and HB are cognitive biases. Does anyone not find it odd, given the distinction between emotional and cognitive biases?
In a similar vein, prospect theory, could be classified as a sub-category of "Framing and question wording", since it relies on the way the value is framed (ie as either a gain or a loss relative to the reference point), but the SA 7 notes have loss aversion as an emotional bias and framing as a cognitive bias?
Q3) If I find the ST 5 course notes easier to follow, then, provided there is no contradiction with core notes, is it acceptable to use the definitions from the st 5 notes for the SA 7 exam?
Thank you.