Steve purchased a stock last year for $34 a share.The stock increased in value to $36 a share before declining to its current value of $30.Steve has decided to sell the stock,but only if he can receive $34 a share or better.Steve is suffering most from which one of the following behavioral conditions?
A)representativeness heuristic
B)house money
C)get-evenitis
D)randomness
E)arbitrage reaction

Question

Quizplus · Accepted Answer

Steve is suffering from get-evenitis, as he wants to sell the stock at a price that will allow him to break even (i.e., $34 per share), instead of objectively evaluating the current market value and potential for future growth.

Steve Purchased a Stock Last Year for $34 a Share