Statman (1977) argues that ________ is consistent with some investors' irrational preference for stocks with high cash dividends and with a tendency to hold losing positions too long.
A) mental accounting
B) regret avoidance
C) overconfidence
D) conservatism

Question

Quizplus · Accepted Answer

Mental accounting is consistent with investors' irrational preference for high cash dividends and holding losing positions too long, as it involves compartmentalizing financial decisions and treating money differently based on its source or intended use.

Statman (1977) Argues That ________ Is Consistent with Some Investors