Conservatism implies that investors are too __________ in updating their beliefs in response to new evidence and that they initially __________ to news.
A)quick; overreact
B)quick; under react
C)slow; overreact
D)slow; under react Conservatism implies that investors are too slow in updating their beliefs in response to new evidence and that they initially underreact to news.

Question

Quizplus · Accepted Answer

Conservatism theory suggests that investors are slow in changing their beliefs and adjust their predictions based on new information, and they tend to underreact in their initial response to news.

Conservatism Implies That Investors Are Too __________ in Updating Their