According to the Concept of Loss Aversion, Individual Investors Are

question 8

Multiple Choice

According to the concept of loss aversion, individual investors are most apt to do which one of the following?

• A)sell stocks with gains more frequently than stocks with losses
• B)sell stocks with losses more frequently than stocks with gains
• C)hold stocks with gains and sell stocks with losses
• D)sell all stocks after a pre-determined length of time
• E)hold all stocks unless they decline more than ten percent in value

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Definitions:

Rude People

Individuals who display impolite, discourteous, or offensive behaviors towards others.

Affect

Refers to the influence or emotional impact of something on an individual.

Lifestyle

The way in which a person or group lives, including patterns of social relations, consumption, entertainment, and dress.

Bridge Washouts

The destruction or severe damage of bridge structures because of the force of water, typically following heavy rain events or floods.