Which of the Following Are Common but Dysfunctional Investor Behaviors

question 3

Multiple Choice

Which of the following are common but dysfunctional investor behaviors?
I. overinvesting in companies with familiar names
II. dividing their funds equally among available choices, even if several of the choices serve the same purpose
III. holding on to a stock that has dropped in value because you would be willing to buy it at its current price
IV. overestimating one's ability to pick successful investments

• A) I and IV only
• B) II and III only
• C) I, II and IV only
• D) I, II, III and IV

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Definitions:

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The exchange of animal furs (primarily beaver pelts) between traders and indigenous peoples in North America, a significant economic activity from the 16th to 19th centuries.

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The act of driving out British forces or authority, often in the context of struggles for independence by various nations.

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The authority and influence held by a federal government, encompassing powers shared or distributed between the national government and its subdivisions.

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