Which of the Following Tendencies of Individual Investors Is Called

question 38

Multiple Choice

Which of the following tendencies of individual investors is called the disposition effect?

• A)The tendency to trade too much based on the mistaken belief that they can pick winners and losers better than investment professionals.
• B)The tendency to buy stocks that have been in the news,advertised more,have very high trading volume,or recently had extreme (high or low)returns.
• C)The tendency to put too much weight on their own experience rather than considering historical evidence.
• D)The tendency to hold on to stocks that have lost value and sell stocks that have risen in value since the time of purchase.

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Definitions:

Zen Buddhism

A school of Mahayana Buddhism that emphasizes the practice of meditation and the concept of achieving insight into the nature of existence.

Mindfulness Practices

Techniques aimed at focusing one's awareness on the present moment while calmly acknowledging and accepting one's feelings, thoughts, and bodily sensations.

Behavioral Family Systems

A therapeutic approach focusing on understanding and improving family dynamics through the lens of behavioral psychology.

Systemic Barriers

Structural impediments that prevent certain groups of people from achieving equal access to goods, services, or opportunities in society.