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Mental Accounting Tends to Lead to Irrational Investor Behavior Because

Question 25

Multiple Choice

Mental accounting tends to lead to irrational investor behavior because it supports the notion that:


A) investors tend to overanalyze each investment opportunity.
B) investors avoid any mental effort related to investing.
C) selling a security is mentally easier than purchasing it.
D) investors can become emotionally attached to a security at a specific value.
E) investors have unrealistic rate of return expectations.

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