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The Price of Your Investment Increases 20% One Month After

Question 6

Multiple Choice

The price of your investment increases 20% one month after you buy it. You do not believe that the share's prospects have changed. Which one of the following actions would indicate the lowest amount of risk aversion?


A) You hang onto the share anticipating that it will go higher.
B) You buy more shares, anticipating that it will go higher.
C) You sell all of your share holdings immediately.
D) You sell half your share holdings and invest the proceeds in other areas of your portfolio.

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