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.
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.
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.
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