Mark's dad and sister both work for Procter & Gamble. He has lived in Cincinnati, OH (the headquarters for P&G) his entire life. After graduating from college, Mark landed a job a P&G in the diaper division in a brand management capacity. He decides to allocate his 401(k) 50% to the Vanguard Total Stock Market Index, 20% to the Vanguard International Growth Fund, and 30% into P&G stock. Which bias most likely explains this allocation mix? a) Familiarity bias b) Confirmation bias c) Status quo bias

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Mark's dad and sister both work for Procter
& Gamble. He has lived in Cincinnati, OH
(the headquarters for P&G) his entire life.
After graduating from college, Mark landed
a job a P&G in the diaper division in a brand
management capacity. He decides to
allocate his 401(k) 50% to the Vanguard
Total Stock Market Index, 20% to the
Vanguard International Growth Fund, and
30% into P&G stock. Which bias most likely
explains this allocation mix?
a) Familiarity bias
b) Confirmation bias
c) Status quo bias
Transcribed Image Text:Mark's dad and sister both work for Procter & Gamble. He has lived in Cincinnati, OH (the headquarters for P&G) his entire life. After graduating from college, Mark landed a job a P&G in the diaper division in a brand management capacity. He decides to allocate his 401(k) 50% to the Vanguard Total Stock Market Index, 20% to the Vanguard International Growth Fund, and 30% into P&G stock. Which bias most likely explains this allocation mix? a) Familiarity bias b) Confirmation bias c) Status quo bias
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