Which of the Following Are Common but Dysfunctional Investor Behaviors

question 3

Multiple Choice

Which of the following are common but dysfunctional investor behaviors?
I. overinvesting in companies with familiar names
II. dividing their funds equally among available choices, even if several of the choices serve the same purpose
III. holding on to a stock that has dropped in value because you would be willing to buy it at its current price
IV. overestimating one's ability to pick successful investments

• A) I and IV only
• B) II and III only
• C) I, II and IV only
• D) I, II, III and IV

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Definitions:

Objectives

Specific, measurable goals set by an individual or organization that aim to achieve a desired outcome or performance level.

Mission Statement

A structured outline that describes the goals and ethics of a business, group, or individual.

Core Goals

Fundamental objectives that an organization or individual strives to achieve, which are central to its mission or purpose.

Mission Statement

An official abstract detailing the objectives and principles of a corporation, entity, or person.