答案和详解如下: Q1. 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) Representativeness. B) Fear of regret. C) Anchoring. Correct answer is B) Shrum refuses to follow a stock after she sells it because she does not want to experience the regret of seeing it rise. The behavioral characteristic used for the basis for her decision making is the fear of regret. Q2. All of the following actions are consistent with feelings of regret EXCEPT: A) hiring a full-service broker. B) selling losers quickly. C) holding on to losers too long. Correct answer is B) Investors attempt to avoid regret by holding on to losers hoping the stocks will rebound. If the stock rebounds to its original purchase price, the stock can be sold with no regret. The investor also might try to avoid regret by distancing themselves from their decisions by hiring a full-service broker. Q3. Tom Roberts loves to read about stocks. He subscribes to the Los Angeles Times, the New York Times, and Smart Money Magazine. He respects the various publications but places more emphasis on Smart Money magazine because it specializes in investment issues. What behavioral characteristic does Roberts have as the basis for his decision making? A) Anchoring B) Frame dependence. C) Representativeness. Correct answer is B) Roberts uses frame dependence as the basis for his decision making. He places more weight on the financial publication just because it specializes in investments without evaluating the investment advice on its own merits. |