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
E) the tendency for stock returns to be higher on sunny days
Correct Answer:
Verified
Q41: What are the implications of the efficient
Q45: Individual investors who grow up and live
Q112: Which of the following is the best
Q113: If a manager wishes to raise his
Q115: Aerelon Airways,a commercial airline,suffers a major crash.As
Q116: Individual investors trade conservatively,given the difficulty of
Q117: Carbondale Oil announces that a wildcat well
Q118: Use the table for the question(s)below.
Q119: Praetorian Industries will pay a dividend of
Q121: Why is the disposition effect costly from
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents