Griffin believes he is a sophisticated investor and has theability to select the best funds and outperform market indices. Heinvests solely with New England Mutual Funds, a very large andwell-known family of funds covering the international market. Atone point, Griffin was approached by an asset manager fromPawtucket Investments, a much smaller firm by AUM compared to NewEngland and focuses only on select market segments. The assetmanager tried unsuccessfully, to persuade Griffin to switch toPawtucket. When asked why, Griffin responded that New England isfamiliar and convenient.
C. Discuss two potential behavioral biases Griffin exhibits andjustify your response.
