Question 13 of 90
An investor in the accumulation phase of retirement planning has a portfolio concentrated in bank fixed deposits. Which behavioural bias is the investor exhibiting?
A
Confirmation Bias
B
Familiarity Bias
C
Herd Mentality
D
Overconfidence
Correct Option:
B
Explanation
Familiarity Bias occurs when investors prefer investment products they already know well, such as bank fixed deposits, even when other investments may better meet their long-term financial objectives.
