Page 1. Match each example to one of the following behavioral characteristics. (LO 9-1) 1. Investors are slow to update

[answerhappygod]

Page 1 Match Each Example To One Of The Following Behavioral Characteristics Lo 9 1 1 Investors Are Slow To Update 1 (46 KiB) Viewed 103 times

Page 1. Match each example to one of the following behavioral characteristics. (LO 9-1) 1. Investors are slow to update their beliefs when given new evidence. i. Disposition effect b. Investors are reluctant to bear losses due to their 1. Representativeness unconventional decisions. bias c. Investors exhibit less risk tolerance in their retirement accounts versus their other stock ii. Regret avoidance accounts. d. Investors are reluctant to sell stocks with paper losses. iv. Conservatism bias e. Investors disregard sample size when forming views about the future from the past. v. Mental accounting 2. Jill Davis tells her broker that she does not want to sell her stocks that are below the price she paid for them. She believes that if she just holds on to them a little longer, they will recover, at which time she will sell them. What behavioral characteristic does Davis display? A. Loss aversion B. Conservatism C. Disposition effect 3. After Polly Shrum sells a stock, she avoids following it in the media. She is afraid that it may subsequently increase in price. What behavioral characteristic does Shrum have as the basis for her decision making? A. Fear of regret B. Representativeness C. Mental accounting 4. All of the following actions are consistent with feelings of regret except: (LO9-1] A. Selling losers quickly 8. Hiring a full-service broker C Holding on to losers too long 5. Which one of the following would be a bullish signal to a technical analyst using moving average rules? A. A stock price crosses above its 52-week moving average B. A stock price crosses below its 52-week moving average C. The stock's moving average is increasing D. The stock's moving average is decreasing