According to the Idea of "Hot-Hand" Fallacy, Investors Are Most

question 93

Multiple Choice

According to the idea of "hot-hand" fallacy, investors are most apt to:

• A) quickly sell any loser.
• B) invest most heavily in their big losers.
• C) get in and back out of the market quickly.
• D) invest more in recent winners than in recent losers.
• E) sell their winners and keep their losers.

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Definitions:

False Assumption

An incorrect belief or premise that may lead to erroneous conclusions or actions.

Same Characteristics

Qualities, attributes, or features that are identical or very similar between entities.

Wealth Inequity

The unequal distribution of assets, wealth, and income among individuals or groups within a society, leading to economic disparity.

Prejudice

A preconceived opinion or judgment about someone or something that is not based on reason or actual experience.