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Mutual funds A and B are both trading at $50. The manager for fund A predicts the fund will increase

by | Sep 9, 2023 | finance

Mutual funds A and B are both trading at $50. The manager for fund A predicts the fund will increase by 15%, while the manager for fund B indicates an expected price of $57.50. If an investor prefers fund A, he is making the behavioral mistake known as:

a. Narrow framing.

b. Framing.

c. Anchoring.

d. Cognitive dissonance.

 

  

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