The impact of disposition effect on investor's tax obligation. Introduction: A disposition effect is an inclination of investors to hold losers for a long duration and sell the winners very quickly. The investors are keen to take in profits; however, they are hesitant to take in loses.

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Chapter 13, Problem 11P

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To determine: The impact of disposition effect on investor's tax obligation.

Introduction: A disposition effect is an inclination of investors to hold losers for a long duration and sell the winners very quickly. The investors are keen to take in profits; however, they are hesitant to take in loses.

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