According to Prospect Theory

question 131

Multiple Choice

According to prospect theory,

• 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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Definitions:

Turnover

In a business context, it refers to the rate at which employees leave a company and are replaced within a certain period.

Social Security

A government program designed to provide financial assistance to people with insufficient or no income, mainly targeting the elderly, disabled, and unemployed.

Directional Hypothesis

A hypothesis indicating the expected direction of difference or linkage between variables.

Fear Of Crime

An emotional response characterized by anxiety or concern about becoming a victim of crime.