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Other Fields Homework Help Finance Topic started by: Memphic on Nov 20, 2017



Title: Assume that you are an investor with the disposition effect and you bought each of these stocks in ...
Post by: Memphic on Nov 20, 2017
Assume that you are an investor with the disposition effect and you bought each of these stocks in January.  Suppose that it is currently the end of June, which stocks are you most inclined to sell?
1.   Taggart Transcontinental
2.   Rearden Metal
3.   Wyatt Oil
4.   Nielson Motors
A) 1 only
B) 1 and 3 only
C) 2 only
D) 1, 2, and 3 only


Title: Re: Assume that you are an investor with the disposition effect and you bought each of these stocks ...
Post by: deusmaroto on Nov 20, 2017
D
Explanation:  D) With the disposition effect investors are likely to sell winners and hold on to losers, so they would sell the three winners Taggart, Rearden, and Wyatt.