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:

High-Voltage

refers to electrical energy at a level high enough to inflict damage, harm, or death upon contact or capable of performing a substantial amount of work.

Splinter

A thin, sharp piece of wood.

Wood

A hard, fibrous material forming the trunk and branches of trees or shrubs, used for construction, fuel, and as a raw material for many products.

Sharp Piece

A fragment or object with a pointed or edged part capable of cutting or puncturing.