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:

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money, either on demand or at a specified future date.

Maturity Date

The specified date on which the principal amount of a financial instrument, such as a bond, loan or fixed deposit, is due to be repaid.

Negotiability

The quality of being transferable by endorsement or delivery so as to enable the holder to pass title to a third party.

Cashier's Check

A bank-issued check that is drawn from the bank's own funds and signed by a cashier, commonly used for significant transactions requiring guaranteed funds.