Yesterday, Krista Stated That Overland Stock Was Only Worth $12

question 51

Multiple Choice

Yesterday, Krista stated that Overland stock was only worth $12 a share and since it was selling for $15 a share, she declared it overpriced and refused to buy any shares. This morning, she learned that she is inheriting 3,500 shares of Overland stock from her grandmother. Suddenly, she is saying that Overland stock is a great buy at $15 and is probably worth at least $17 a share. This is an example of which one of the following?

• A)endowment effect
• B)money illusion
• C)regret aversion
• D)myopic loss aversion
• E)sunk cost fallacy

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Definitions:

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A confectionery item that typically combines chocolate with other ingredients like nuts, caramel, or nougat.

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The cost of what you have to give up in order to choose something else; the value of the next best alternative forgone.

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The organization through which a specific geographical region within a country is governed, having its specific executive, legislative, and judicial powers.