Q1. Kelly Lieb and Don Carsner are discussing their investments in the Shrader Tire 401(k) defined contribution plan. Lieb and Carsner make the following statements in their conversation: Lieb: “Most of the money I have invested in our 401(k) plan is in Shrader Tire stock. Management would not include it as an option if it were not a good investment.” Carsner: “I allocate most of my money to Shrader Tire Company stock as well. I don’t know anything about the other investment options, and I want to be loyal to the company.” Which of the following factors behind holding company stock best reflects Lieb’s comment and Carsner’s comment respectively? Lieb's Comment Carsner's Comment
A) Endorsement effect Familiarity bias B) Familiarity bias Familiarity bias C) Endorsement effect Endorsement effect
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