Use the following information to answer the question(s) below.
Consider the price paths of the following stocks over a six-month period:
None of these stocks pay dividends.
-Assume that you are an investor with the disposition effect and you bought each of these stocks in January.Suppose that it is currently the end of June,which stocks are you most inclined to sell?
1)Taggart Transcontinental
2)Rearden Metal
3)Wyatt Oil
4)Nielson Motors

Question

Use the following information to answer the question(s) below.
Consider the price paths of the following stocks over a six-month period:
  None of these stocks pay dividends.
-Assume that you are an investor with the disposition effect and you bought each of these stocks in January.Suppose that it is currently the end of June,which stocks are you most inclined to sell?
1)Taggart Transcontinental
2)Rearden Metal
3)Wyatt Oil
4)Nielson Motors

Quizplus · Accepted Answer

D) With the disposition effect investors are likely to sell winners and hold on to losers, so they would sell the three winners Taggart, Rearden, and Wyatt.

Use the Following Information to Answer the Question(s) Below