An investor who continues to put more money into a declining stock in hopes its fortunes will turn exemplifies which of the following cognitive biases?
A) The winner's curse
B) Anchoring and adjustment
C) Escalation of commitment
D) Mythical fixed pie

Question

Quizplus · Accepted Answer

Escalation of commitment is a cognitive bias where an individual continues to invest in a decision despite new evidence suggesting it may be wrong, often due to emotional attachment or the desire to justify previous investments.

An Investor Who Continues to Put More Money into a Declining