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According to the Concept of Loss Aversion, Individual Investors Are

Question 25

Multiple Choice

According to the concept of loss aversion, individual investors are most apt to do which one of the following?


A) sell stocks with gains more frequently than stocks with losses
B) sell stocks with losses more frequently than stocks with gains
C) hold stocks with gains and sell stocks with losses
D) sell all stocks after a pre-determined length of time
E) hold all stocks unless they decline more than ten percent in value

Correct Answer:

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