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A Study of Trading Behaviour of Individual Investors at a Discount

Question 10

Multiple Choice

A study of trading behaviour of individual investors at a discount brokerage found that individualinvestors

A) trade very actively, despite the fact that their performance is actually worse because of trading costs.
B) trade very conservatively, partly because their performance is better than the professionals' due to low trading costs.
C) trade very actively, partly because their performance is better than the professionals' due to low trading costs.
D) trade very conservatively, despite the fact that their performance is actually worse because of trading costs.

Correct Answer: