The Tendency of Investors to Hold on to Losing Investments

question 52

Multiple Choice

The tendency of investors to hold on to losing investments is called the ________.

• A) overweighting effect
• B) head-in-the-sand effect
• C) disposition effect
• D) prospector effect

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Definitions:

Terrace

Refers to a leveled surface or platform built into a landscape, often used for agriculture or as a feature in gardens.

Discrimination Learning

The process whereby organisms learn to make different responses to similar but distinct stimuli, highlighting the ability to perceive differences in stimuli.

Hull-Spence Model

a theory combining Hull's drive reduction theory and Spence's learned motivation theory, focusing on how reinforcers and cues control behavior.

Noncontinuity View

A perspective that suggests changes or phenomena occur in discrete steps or stages rather than gradually.