Which of the Following Behaviors Is Consistent with Escalation Bias

question 101

Multiple Choice

Which of the following behaviors is consistent with escalation bias?

• A) buying more of a stock as it increases in value
• B) buying more of a stock as it decreases in value
• C) selling a stock as it decreases in value
• D) selling a stock as it increases in value
• E) buying or selling a stock as it increases in value

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Definitions:

Electrical System

A network of electrical components connected together to generate, transmit, distribute, store, or use electricity.

Main Winding

The primary coil or loop of wire in a motor or generator that creates a magnetic field when energized.

Run Winding

The winding in a motor that is energized during normal operation to produce torque.

Fractional Horsepower

A term describing motors that have a power rating less than one horsepower, often used in low-power applications.