Just Two Months After You Put Money into an Investment

question 52

Multiple Choice

Just two months after you put money into an investment its price falls 25 percent.Assuming that none of the investment fundamentals have changed,which of the following actions would evidence the greatest risk tolerance?

• A) You sell to avoid further worry and buy something else.
• B) You do nothing and wait for the investment to come back.
• C) You buy more thinking that if it was a good investment before; now it's not only good it is cheap too.
• D) You sue your financial advisor.

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Definitions:

Subordinate's Behavior

The actions and conduct of individuals who are in positions lower in the organizational hierarchy in relation to their supervisors.

Core Characteristics Model

A framework, often related to job design, that outlines the essential elements of a role or job which can lead to higher job satisfaction and increased productivity.

Job Enrichment

A method of motivation through which jobs are redesigned to increase the amount of challenge and complexity, providing employees with opportunities for personal growth and meaningful work.

Practicing Managers

Individuals actively involved in managing and leading within organizational environments, applying management theories and strategies.