The Tendency to Hang on to Losers and Sell Winners

question 67

Multiple Choice

The tendency to hang on to losers and sell winners is known as the:

• A)cascade effect.
• B)disposition effect.
• C)overconfidence bias.
• D)systematic behavior bias.

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Definitions:

Overhead Variances

Differences between the actual overhead costs incurred and the overhead costs that were budgeted or expected.

Fixed

A financial term referring to costs that do not change with the level of production or sales, such as rent, salaries, and insurance.

Variable

Refers to a quantity that can change or vary over time or based on certain conditions.

Period

A duration of time identified for specific accounting or financial reporting purposes.