________ may reflect a reluctance to "admit a mistake" by taking the loss.

Question

Quizplus · Accepted Answer

The disposition effect refers to the tendency for investors to hold on to losing investments and sell winning investments. This behavior reflects a reluctance to "admit a mistake" by taking the loss, which is a psychological bias that can lead to poor investment decisions. Factors such as familiarity bias and rational expectations may also impact investment decisions, but they are not specific to the behavior of holding on to losing investments. Relative wealth concerns may impact investment decisions, but they are not directly related to the disposition effect.

________ May Reflect a Reluctance to "Admit a Mistake" by Taking