Ahmad founds that the stocks of the ABC global investor are stable with only slight fluctuation and are still far above the level from the med of 2022 when the stocks were aged 17.4, compared to aged 28.37 on November 14th 2022. Ahmad has called the broker and asked him to buy 3600 stocks of ABC global investor.

Required:

Discuss the behavioral bias that Ahmad has demonstrated in the above given scenario

Answer rating: 100% (QA)

Ahmad is demonstrating a behavioral bias known as anchoring bias in the given scenario Anchoring bias is a cognitive bias where individuals rely too h... View the full answer