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:

Payday Loan

A brief-duration loan with high interest rates, usually payable by the borrower on their upcoming payday.

Compensation

The total amount of the various salaries, wages, bonuses, benefits, and other forms of payment given to employees for their work.

Profitable Stores

Retail or commercial outlets that generate more revenue than the operating and other costs, thereby yielding profit.

Profit Based Compensation

A remuneration strategy where employees' or executives' earnings are directly linked to the profitability of the organization.