Which of the following are common but dysfunctional investor behaviors?
I. overinvesting in companies with familiar names
II. dividing their funds equally among available choices, even if several of the choices serve the same purpose
IV. hastily disposing of stocks that have dropped in price in order to take advantage of tax breaks
IV. exaggerating the role of luck and randomness in investment success or failure
A) I and IV only
B) II and III only
C) I, II and III only
D) I, II, III and IV only

Question

Quizplus · Accepted Answer

Overinvesting in familiar companies, equally dividing funds without considering diversification, and hastily selling stocks for tax reasons are common dysfunctional behaviors. Exaggerating luck's role is not typically considered dysfunctional.

Which of the Following Are Common but Dysfunctional Investor Behaviors