The Overconfidence Bias Tends to Encourage Investors To

question 28

Multiple Choice

The overconfidence bias tends to encourage investors to:

• A) trade too much.
• B) trade too infrequently.
• C) sell winners to early.
• D) hold losers to long.

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Definitions:

Business Relationship

A connection between individuals or organizations engaged in commercial or professional interactions.

Contractual Relationship

A legal binding between two or more parties, enforceable by law, involving mutual obligations.

Conversion

Conversion involves changing something from one form or use to another, such as converting a residential building into a commercial space or changing currencies.

Trespass To Personal Property

The unlawful taking or harming of another’s personal property; interference with another’s right to the exclusive possession of his or her personal property.