According to the Concept of Loss Aversion, Individual Investors Are

question 8

Multiple Choice

According to the concept of loss aversion, individual investors are most apt to do which one of the following?

• A)sell stocks with gains more frequently than stocks with losses
• B)sell stocks with losses more frequently than stocks with gains
• C)hold stocks with gains and sell stocks with losses
• D)sell all stocks after a pre-determined length of time
• E)hold all stocks unless they decline more than ten percent in value

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Definitions:

ATM System

An Automated Teller Machine (ATM) system refers to an electronic banking outlet that allows customers to complete financial transactions without the need for a branch representative or teller.

Auto Theft

The criminal act of stealing or unlawfully taking possession of someone else's motor vehicle.

Self-Incrimination

Giving testimony in a trial or other legal proceeding that could expose the person testifying to criminal prosecution.

Criminal Activities

Actions that violate laws and are punishable by the government, ranging from fraud to violent offenses.