Which of the following tendencies of individual investors is called the disposition effect?
A) The tendency to trade too much based on the mistaken belief that they can pick winners and losers better than investment professionals.
B) The tendency to buy stocks that have been in the news,advertised more,have very high trading volume,or recently had extreme (high or low) returns.
C) The tendency to put too much weight on their own experience rather than considering historical evidence.
D) The tendency to hold on to stocks that have lost value and sell stocks that have risen in value since the time of purchase.
Correct Answer:
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