Steve Purchased a Stock Last Year for $34 a Share

question 37

Multiple Choice

Steve purchased a stock last year for $34 a share.The stock increased in value to $36 a share before declining to its current value of $30.Steve has decided to sell the stock,but only if he can receive $34 a share or better.Steve is suffering most from which one of the following behavioral conditions?

• A)representativeness heuristic
• B)house money
• C)get-evenitis
• D)randomness
• E)arbitrage reaction

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Definitions:

Operant Conditioning

A method of learning that occurs through rewards and punishments for behavior, encouraging the subject to associate certain behaviors with consequences.

Superstitious Behavior

Actions based on irrational beliefs that certain rituals or practices can influence outcomes, despite a lack of causal connection.

Lucky Charms

A brand of breakfast cereal produced by General Mills, characterized by its marshmallow shapes; colloquially, it can also refer to objects or symbols considered to bring good luck.

Skinner

B.F. Skinner, an American psychologist known for his work in behaviorism and for developing the theory of operant conditioning.