Cartman was just left half of his grandmother’s estate after she died. Since he isn’t really...

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Finance

Cartman was just left half of his grandmother’s estate after shedied. Since he isn’t really sure what to do with his newfoundwealth, he decides to work with a financial planner. As a part ofthe financial plan, the advisor recommends adjusting his inheritedportfolio of C.D.’s and T-bills into an investment policy that moreclosely resembles Cartman’s goals, risk tolerance, and timehorizon. Although Cartman sees how this would normally make sense,he told the advisor he preferred to keep things “as is,” becausethis money was his grandmother’s, and she seemed to do ok. Or inCartman’s words, she did “cooo.” So, instead of realigning theinvestments to better match Cartman’s situation, he just keptthings the way they were. 1) What behavior/bias is present? 2) Whyis this behavior detrimental? 3) What could have been donedifferently, or what could be done differently next time to avoidthis result?

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1 The behavior of Financial Planner is not bias at all because as a part of the financial planning it is hisher duty to show ways and means to its client to enhance his wealth with See Answer

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