Peter Hesitates When It Comes to Picking an Individual Stock

question 20

Multiple Choice

Peter hesitates when it comes to picking an individual stock to purchase as he feels that he will later realize that a different stock would have been a better investment. Peter is suffering from:

• A)money illusion.
• B)frame dependence.
• C)regret aversion.
• D)risk-taking.
• E)mental accounting.

---

Definitions:

Listening

The active process of receiving, comprehending, and responding to spoken or non-verbal messages.

Recommended

Suggested or advised as a course of action or to be suitable based on certain qualifications or conditions.

Counting To Ten

A technique used to promote calmness and emotional control by pausing and counting slowly to ten before reacting.

Old Technique

Describes a method or approach that has been used for a long time, often replaced by newer methods but still valued for certain applications.