Statman (1977) Argues That ________ Is Consistent with Some Investors

question 47

Multiple Choice

Statman (1977) argues that ________ is consistent with some investors' irrational preference for stocks with high cash dividends and with a tendency to hold losing positions too long.

• A) mental accounting
• B) regret avoidance
• C) overconfidence
• D) conservatism

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Definitions:

Assignee

A person to whom rights or property is legally transferred.

Non Est Factum

Non est factum is a legal defense in contract law that asserts a signed agreement is void because the signer was mistaken about its nature and character.

Negligence

A failure to act with the care that a reasonably prudent person would exercise under the same circumstances, often leading to liability for resulting damages.

Privity of Contract

The principle that a contract confers rights and imposes liabilities only on its parties; no outsider can gain rights or be liable under it.