Mike Is a Stock Broker and Financial Planner

question 20

Multiple Choice

Mike is a stock broker and financial planner.Phil is one of Mike's clients.Phil prefers to meet with Mike just once a year to review his investment portfolio.At their most recent meeting,Phil stated he believes the stock market is going to decline in value over the next six months.Thus,Phil instructed Mike to sell every stock he owns that is currently worth more than what he paid to purchase it.Phil also instructed Mike to retain any stock that would create a capital loss if sold.Phil is displaying the behavior known as:

• A)overconfidence.
• B)arbitrage theory.
• C)the disposition effect.
• D)the house money effect.
• E)a confirmation bias.

---

Definitions:

Hyperglycemia

A condition characterized by higher than normal levels of glucose (sugar) in the blood.

Hyperglycemia

A condition characterized by high levels of glucose in the blood, often associated with diabetes and requiring management of sugar intake.

Bloodstream

The flow of blood within the circulatory system of a body.

Skin Cancer

A common form of cancer that develops in the cells of the skin, often due to overexposure to ultraviolet radiation from the sun or tanning beds.