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Basic Question 4 of 7
After extended periods of positive earnings, analysts expect this trend to continue even after companies begin to report disappointing results (and, presumably, there are objective reasons to expect this trend to continue). This is known as: A. conservatism bias
B. confirmation bias
C. availability bias
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Learning Outcome Statements
discuss commonly recognized behavioral biases and their implications for financial decision making
CFA® 2025 Level I Curriculum, Volume 6, Module 5.