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Memphic Memphic
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6 years ago
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 hold?
1.   Taggart Transcontinental
2.   Rearden Metal
3.   Wyatt Oil
4.   Nielson Motors
A) 1 only
B) 4 only
C) 1 and 3 only
D) 2 and 4 only
Textbook 
Corporate Finance: The Core

Corporate Finance: The Core


Edition: 4th
Authors:
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Replies
wrote...
6 years ago
B
Explanation:  B) With the disposition effect investors are likely to sell winners and hold on to losers, so they would hold the only loser:  Nielson Motors.
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