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wrote...
Posts: 215
2 weeks ago
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.
Textbook 
Fundamentals of Corporate Finance
Edition: 2nd
Authors:
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Answer verified by a subject expert
wrote...
Posts: 191
2 weeks ago
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The tendency to hold on to stocks that have lost value and sell stocks that have risen in value since the time of purchase.
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wrote...
2 weeks ago
Smart ... Thanks!
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