Yesterday, Krista Stated That Overland Stock Was Only Worth $12

question 51

Multiple Choice

Yesterday, Krista stated that Overland stock was only worth $12 a share and since it was selling for $15 a share, she declared it overpriced and refused to buy any shares. This morning, she learned that she is inheriting 3,500 shares of Overland stock from her grandmother. Suddenly, she is saying that Overland stock is a great buy at $15 and is probably worth at least $17 a share. This is an example of which one of the following?

• A)endowment effect
• B)money illusion
• C)regret aversion
• D)myopic loss aversion
• E)sunk cost fallacy

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Definitions:

Mnemonic Disturbance

A disruption in the ability to remember or recall information, often due to brain dysfunction or psychological stress.

Agnosia

A neurological disorder characterized by the inability to recognize and interpret sensory information, despite having functioning senses.

Hyperorality

A condition characterized by an increased desire to put objects into the mouth, often seen in neurological disorders.

Aphasia

A disorder caused by damage to parts of the brain that affects a person's ability to communicate, including speaking, understanding, reading, and writing.