A Study of Trading Behavior of Individual Investors at a Discount

question 6

Multiple Choice

A study of trading behavior of individual investors at a discount brokerage found that individual investors ________.

• A) trade very actively, despite the fact that their performance is actually worse because of trading costs
• B) trade very conservatively, despite the fact that their performance is actually worse because of trading costs
• C) trade very actively, partly because their performance is better than the professionals' due to low trading costs
• D) trade very conservatively, partly because their performance is better than the professionals' due to low trading costs

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Definitions:

Minimization

The act of reducing or diminishing the significance, impact, or size of something to its smallest possible level.

Problem Focused

An approach that concentrates on identifying and addressing specific issues or challenges directly.

Breast Biopsy

A medical procedure where a small sample of breast tissue is removed and examined for signs of breast cancer or other conditions.

Distractible

Characterized by a lack of concentration and too easily drawn away from the task at hand.