The principle that investors might be too slow in adjusting their beliefs to new information is referred to as:
A)conservatism.
B)liberalism.
C)representativeness.
D)weak form efficiency.
E)the timing decision.

Question

Quizplus · Accepted Answer

The principle described is conservatism, which suggests that investors may be slow to update their beliefs and instead cling to their prior beliefs, leading to a delay in the adjustment of market prices.

The Principle That Investors Might Be Too Slow in Adjusting