The Process of Selling Certain Issues in a Portfolio and Purchasing

question 27

Multiple Choice

The process of selling certain issues in a portfolio and purchasing new ones to replace them is known as

• A) dollar-cost averaging.
• B) portfolio revision.
• C) market timing.
• D) red herring baiting.

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Definitions:

Recency Effect

A cognitive bias in which the most recently presented information or experiences are remembered more clearly than earlier ones.

Perceptual Errors

Mistakes in judgment or interpretation caused by inaccuracies in the perceptual process, similar to perceptual distortions but emphasizing the error aspect.

Performance Appraisal

The systematic evaluation of employees' job performance and productivity to understand their capabilities for future growth or development.

Self-fulfilling Prophecy

A psychological phenomenon in which an individual's or group's belief or expectation brings about its own fulfillment, either directly or indirectly, influencing behavior and outcomes.