Quiz_ Individual Investors_ UGBA 135 & MBA 296 - Personal Financial Management (Spring 2024)

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University of California, Berkeley *

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135

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Finance

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Jun 6, 2024

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Quiz: Individual Investors Due Apr 21 at 11:59pm Points 11 Questions 11 Available until May 5 at 11:59pm Time Limit None Allowed Attempts Unlimited Instructions Attempt History Attempt Time Score LATEST Attempt 1 4 minutes 11 out of 11 Correct answers are hidden. Score for this attempt: 11 out of 11 Submitted Apr 21 at 8:58pm This attempt took 4 minutes. Question 1 1 / 1 pts Earn more Diversify better Trade more frequently Question 2 1 / 1 pts CAUTION: re-taking the quiz after the deadline will mark the quiz as "late" and a late penalty will be assessed. If you are looking for additional practice after the deadline, please take the practice version of the quizzes instead. Take the Quiz Again Overconfident traders tend to In a study of individual investors with accounts at a discount brokerage firm, Professor Odean compared the performance of stocks the investors bought to those they sold over the 12 months following the
The stocks the investors bought underperformed the stocks they sold by an average of about 3 percentage points before accounting for the costs of commissions. The stocks the investors bought outperformed the stocks they sold by an average of about 3 percentage points after accounting for the costs of commissions. The stocks the investors bought underperformed the stocks they sold by an average of about 3 percentage points after accounting for the costs of commissions. The stocks the investors bought outperformed the stocks they sold by an average of about 3 percentage points before accounting for the costs of commissions. Question 3 1 / 1 pts Women traded more actively than men and outperformed a buy-and-hold strategy. Men traded more actively than women and underperformed a buy-and-hold strategy. Women traded more actively than men and underperformed a buy-and-hold strategy. Men traded more actively than women and outperformed a buy-and-hold strategy. Question 4 1 / 1 pts Many houses being damaged in the same earthquake. A woman leaves her expensive diamond earrings on the night stand at a cheap hotel because she knows the earrings are insured. A young man who has does not have health insurance finds out that he needs to have expensive medically necessary surgery in the next year, therefore he signs up for health insurance at the next open enrollment period (i.e., the next opportunity). Question 5 1 / 1 pts transaction. He found: In a study of men and women who were investors at a discount brokerage, Professor Odean and his co- author Brad Barber found: Which of the following is an example of moral hazard? Which of the following is an example of adverse selection?
Many houses being damaged in the same earthquake. A woman leaves her expensive diamond earrings on the night stand at a cheap hotel because she knows the earrings are insured. A young man who has does not have health insurance finds out that he needs to have expensive medically necessary surgery in the next year, therefore he signs up for health insurance at the next open enrollment period (i.e., the next opportunity). Question 6 1 / 1 pts A woman leaves her expensive diamond earrings on the night stand at a cheap hotel because she knows the earrings are insured. Many houses being damaged in the same earthquake. A young man who has does not have health insurance finds out that he needs to have expensive medically necessary surgery in the next year, therefore he signs up for health insurance at the next open enrollment period (i.e., the next opportunity). Question 7 1 / 1 pts True False Question 8 1 / 1 pts True False Question 9 1 / 1 pts Which of the following is an example of correlated risks? Relative to their opportunities, most individual investors are more likely to sell a stock that has gone down in value since they bought it than a stock that has gone up. Individual investors tend to be on the buy side of the market for stocks that catch their attention.
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True False Question 10 1 / 1 pts Poor advice from financial advisors Commissions Poor stock selection Poor market timing A tax on trading Question 11 1 / 1 pts True False Quiz Score: 11 out of 11 According to one class video, over half of the new money flowing into mutual funds each year goes to the funds in the top 20% of fund performance the previous year. In the study of Taiwanese individual investors discussed in the videos, which of the following was not given as a reason why Taiwanese individual investors as a group underperform in the stock market: Most people have a better intuitive grasp of probability than of quantities.