The Study of Behavioral Finance Has Best Helped Explain Which

question 11

Multiple Choice

The study of behavioral finance has best helped explain which of the following investor behaviors?

• A)Investors are often unable to short-sell unfavorable stocks.
• B)Investors often create undiversified portfolios.
• C)Investors tend to sell their losing stocks and retain stocks that have capital gains.
• D)Investors are generally too slow to update their beliefs in the face of new evidence.

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Definitions:

Lack of Appetite

A condition characterized by a decreased desire to eat or absence of hunger.

Cannabis

Cannabis is a genus of flowering plants in the family Cannabaceae, known for its use in medical or recreational drugs and industrial hemp.

Opioids Overdosing

occurs when a person takes a toxic amount of opioids, leading to potentially life-threatening respiratory depression, unconsciousness, and death if not treated promptly.

Competitive Inhibitor

Drug used to treat overdoses and opioid addiction; an example is naloxone, which acts quickly to block opioid action by competing with the opioid for binding sites.