Steve Purchased a Stock Last Year for $34 a Share

question 37

Multiple Choice

Steve purchased a stock last year for $34 a share.The stock increased in value to $36 a share before declining to its current value of $30.Steve has decided to sell the stock,but only if he can receive $34 a share or better.Steve is suffering most from which one of the following behavioral conditions?

• A)representativeness heuristic
• B)house money
• C)get-evenitis
• D)randomness
• E)arbitrage reaction

---

Definitions:

Sucker Effect

A reduction in effort by members of a group based on the perception that others are not making their fair share of effort.

Withhold Effort

Deliberately not giving one's full effort or capability, often in a work context.

Low Cohesiveness

Refers to a lack of unity, solidarity, or agreement among members within a group, which can negatively affect its performance or stability.

Low Conformity

The tendency of an individual or group to resist adhering to the norms or standards of a larger community or society.