Your Investment Suddenly Goes Down 15 Percent One Month After

question 92

Multiple Choice

Your investment suddenly goes down 15 percent one month after you invest. Its fundamentals still look good. What would you do if you were a very risk tolerant investor?

• A) Hold on and wait for it to come back.
• B) Buy more. If it looked good at the original price, it looks even better now
• C) Sell it to avoid losing even more
• D) Sell and then buy if it goes down again
• E) sell and buy GICs

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Definitions:

Instrumental Conditioning

A type of learning where a behavior is strengthened or weakened, based on the behavior's consequences; also known as operant conditioning.

Nausea-Inducing Drug

A medication designed to provoke nausea as a side effect or for therapeutic purposes.

Puzzle Box

An experimental device used in animal learning experiments, requiring the animal to perform a specific task, such as pulling a lever, to escape or obtain food.

Law Of Effect

A principle in psychology stating that behaviors followed by positive outcomes tend to be repeated, whereas behaviors followed by negative outcomes are less likely to be repeated.