The tendency to hold onto losing stocks in the hope that they will recoup is called
A) loss aversion.
B) representativeness.
C) narrow framing.
D) biased self-attribution.

Question

Quizplus · Accepted Answer

Loss aversion refers to the phenomenon where individuals are more sensitive to losses than gains, causing them to hold onto losing stocks in the hope that they will eventually recoup their losses. Representativeness refers to the tendency to categorize new information into pre-existing stereotypes or categories. Narrow framing refers to the tendency to make decisions based on limited information without considering the big picture. Biased self-attribution refers to the tendency to take credit for successes but blame failures on external factors.

The Tendency to Hold onto Losing Stocks in the Hope