Conservatism Implies That Investors Are Too __________ in Updating Their

question 2

Multiple Choice

Conservatism implies that investors are too __________ in updating their beliefs in response to new evidence and that they initially __________ to news.

• A)quick; overreact
• B)quick; under react
• C)slow; overreact
• D)slow; under react Conservatism implies that investors are too slow in updating their beliefs in response to new evidence and that they initially underreact to news.

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Definitions:

Basic Psychological Needs

Essential motivational drives related to autonomy, competence, and relatedness, which humans need to foster well-being and growth.

Self-Determination Theory

A theory of motivation that suggests people are driven to grow and change by three innate and universal psychological needs: competence, autonomy, and relatedness.

Competence

Competence refers to the ability of an individual or organization to effectively perform a task or job, based on their knowledge, skills, and experience.

Need Theories

Motivation theories that specify the kinds of needs people have and the conditions under which they will be motivated to satisfy these needs in a way that contributes to performance.