What is meant by the "disposition effect?"
A) Investors are more likely to sell winners than losers.
B) Investors are more likely to sell losers than winners.
C) Investors sell both winners and losers too soon.
D) Investors hold both winners and losers too long.

Question

Quizplus · Accepted Answer

The disposition effect refers to the tendency of investors to sell assets that have increased in value (winners) while holding onto assets that have decreased in value (losers).

What Is Meant by the "Disposition Effect