Chartered Financial Analyst Level 1
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Which of the following behavioral biases is most closely linked to representativeness bias?
A
Momentum, which is driven by fear of missing out or recent market trends, not representativeness bias.
B
The halo effect, where a favorable evaluation of certain traits leads to an overly optimistic view of an investment.
C
Bubbles and crashes, primarily associated with overconfidence rather than representativeness bias.