Psychologists Have Observed That

question 50

Multiple Choice

Psychologists have observed that:

• A) once investors have made a loss, they become much more willing to take risks.
• B) investors tend to place too much faith in their ability to spot mispriced stocks.
• C) when forecasting the future, people tend to place too little weight on recent events.
• D) investors like stocks of companies whose names begin with letters that occur early in the alphabet.