Investors who are more likely to buy a stock if they see something about it in the news or if it has a high one-day return are experiencing

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The recency effect is the tendency to remember recent information better than earlier information. This misperception often operates among investors (even professionals), who are more likely to buy a stock if they see something about it in the news or if it has a high one-day return.

Investors Who Are More Likely to Buy a Stock If