Which of the Following Behaviors Is Consistent with Escalation Bias

question 24

Multiple Choice

Which of the following behaviors is consistent with escalation bias?

• A) Buying more of a stock as it increases in value.
• B) Buying more of a stock as it decreases in value.
• C) Selling a stock as it decreases in value.
• D) Selling a stock as it increases in value.
• E) Buying or selling a stock as it increases in value.

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Definitions:

Need for Achievement

A psychological drive that fosters the pursuit of accomplishing difficult tasks and meeting high standards of success.

NAch

N-Acetylcholine, a neurotransmitter involved in the activation of muscle action, learning, and memory.

Self-Actualization

A psychological concept referring to the realization or fulfillment of one's talents and potentialities, especially considered as a drive or need present in everyone.

Full Human Potential

The realization of an individual’s complete capability and capacity for growth and development in all aspects of life.