The stock price of PHRM declined by 30% when the FDA did not approve a promising new therapy the company was developing. Patrick holds on to the stock and constantly searches the internet looking for favorable stories about the company while ignoring a cascade of negative reports. This is an example of
A) anchoring.
B) overconfidence.
C) belief perseverance.
D) narrow framing.

Question

Quizplus · Accepted Answer

Patrick's behavior is an example of belief perseverance because he continues to hold onto his belief in the stock's potential despite new evidence to the contrary. He is ignoring negative reports and searching for information that supports his existing belief.

The Stock Price of PHRM Declined by 30% When the FDA