Escalation Bias Refers to the Situation in Which

question 104

Multiple Choice

Escalation bias refers to the situation in which

• A) investors have a propensity to sell winners too soon and hang on to losers too long.
• B) investors ignore bad news and overemphasize good news.
• C) investors tend to follow the herd.
• D) investors put more money into a failure rather than into a success.
• E) investors are all noise traders.

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