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The housing expense ratio, or front-end ratio, measures affordability of housing expenses relative to income. Mortgage lenders often target ≤28%. Current ratio (A) is liquidity, total debt ratio (C) includes all obligations, and liquidity ratio (D) is personal cash adequacy.

Illusion of control is believing one can influence uncontrollable outcomes. Overconfidence (A) is skill misjudgment. Representativeness (C) is pattern extrapolation. Availability (D) is reliance on vivid examples.

Revocable living trusts manage assets during life, avoid probate, and remain amendable. Testamentary trusts (B) are created at death. ILITs (C) are irrevocable. Wills (D) pass through probate.

Self-attribution bias occurs when clients credit successes to skill and blame failures on external factors, distorting their self-assessment. Overconfidence (A) may result but is broader. Recency (B) emphasizes recent events over long-term patterns. Hindsight (C) is the belief that outcomes were predictable after the fact. Self-attribution distorts evaluation of actual investing skill, a core concept in behavioral finance.

Strong-form efficiency states that all information—public and private—is incorporated into stock prices. Weak form (A) covers past prices, semi-strong (B) covers public information only. Random walk (D) describes unpredictability of prices.