Behavioral Finance Quiz winning, best, hold

Carson

The tendency of investors to hold on to losing investments longer than winning investments can be best described by

A. Belief Perseverance
B. Overreaction
C. Loss aversion

nannan66

With 85% picking C it should be thrown out by the angoff method regardless.

bodhisattva

C

NO EXCUSES

pennyless

The answer is A. CFAI Vol 2 page 296. The book mentions regret avoidance as another possibility as well.

IAmNeil

C...don't want to admit that they are facing losses ("they're only paper losses")