Ronald is one of your new clients. In your first meeting, he explained how some of his friends are investing in energy stocks and obtaining high returns recently, and he would like to follow his friends' investment activities. He also told you that he was disappointed that he did not make profit in the previous property market boom.

Identify which type of investor that Ronald belongs to and discuss the key biases he is likely to exhibit. How should you advise Ronald to make investment decision?

Answer rating: 100% (QA)

Based on Ronalds statements he appears to be exhibiting a bias called recency bias which refers to t... View the full answer