The endowment bias suggests that investors:
A) with larger portfolios tend to be more aggressive.
B) with smaller portfolios tend to be more aggressive.
C) develop an attachment to securities in their portfolio.
D) tend to value future cash flows higher than current cash flows.

Question

Quizplus · Accepted Answer

The endowment bias refers to the tendency of investors to value securities they own more highly than those they do not, due to an emotional attachment.

The Endowment Bias Suggests That Investors