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Other Fields Homework Help Finance Topic started by: tlc_71111 on Jul 7, 2019



Title: Which of the following tendencies of individual investors is called the disposition effect?
Post by: tlc_71111 on Jul 7, 2019
Which of the following tendencies of individual investors is called the disposition effect?

▸ 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.

▸ The tendency to put too much weight on their own experience rather than considering historical evidence.

▸ The tendency to hold on to stocks that have lost value and sell stocks that have risen in value since the time of purchase.

▸ The tendency to trade too much based on the mistaken belief that they can pick winners and losers better than investment professionals.


Title: Which of the following tendencies of individual investors is called the disposition effect?
Post by: ccnastopoulos on Jul 7, 2019
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Title: Which of the following tendencies of individual investors is called the disposition effect?
Post by: tlc_71111 on Jul 7, 2019
Smart ... Thanks!