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tlc_71111 tlc_71111
wrote...
Posts: 507
4 years 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

Fundamentals of Corporate Finance


Edition: 2nd
Authors:
Read 84 times
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Do What Makes You Come Alive
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Answer verified by a subject expert
ccnastopoulosccnastopoulos
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Posts: 359
4 years ago
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tlc_71111 Author
wrote...
4 years ago
Smart ... Thanks!
Do What Makes You Come Alive
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