Jordan purchased 400 shares of GE at $16 per share. The price has dropped to $11 and he is disappointed in his purchase, but he is determined not to sell until the price again reaches $16. His decision is based onA. representativeness.B. overconfidence.C. loss aversion.D. belief perserverance.

Stocks or shares represent ownership in a company or organization which entitles the investors to a…

Answered: Jordan purchased 400 shares of GE at…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Jordan purchased 400 shares of GE at $16 per share. The price has dropped to $11 and he is disappointed in his purchase, but he is determined not to sell until the price again reaches $16. His decision is based on A. representativeness. B. overconfidence. C. loss aversion. D. belief perserverance.