The ________ Plays on the Fear of Regret and the Seeking

question 123

Multiple Choice

The ________ plays on the fear of regret and the seeking of pride,resulting in selling winning stocks too soon and keeping losing stocks too long.

• A)disposition effect
• B)reluctance effect
• C)house money effect
• D)overconfidence effect

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Definitions:

Average Price

The mean cost of a good or service, calculated by summing the prices of all the units sold and dividing by the quantity sold.

Trade Surpluses

A situation in which a country's exports exceed its imports, indicating a positive balance of trade.

Precious Metals

Metals of high economic value, such as gold, silver, and platinum, often used for investment or as currency.

Price Level

The average of current prices across the entire spectrum of goods and services produced in the economy.