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Investors Gravitate Towards the Latest Hot Stock Even Though It

Question 66

Multiple Choice

Investors gravitate towards the latest hot stock even though it has never paid a dividend.Even though net income is projected to fall over the current and next several years,the price of the stock continues to rise.What behavioral concept may explain this price pattern?


A) Overconfidence
B) Loss aversion
C) Mental accounting
D) Calendar bias

Correct Answer:

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