Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260316193
Author: Bodie
Publisher: MCG
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Chapter 9, Problem 7PS
Summary Introduction

To determine:

The option "Fear of regret", "Representativeness" and "Mental accounting" that stands to be the behavioral characteristic which Polly possesses as the basis for her decision to sell the stock and then stop following the same in the media with the fear of it being appreciated in price.

Introduction:

Decision making refers to the process of selecting the best alternatives amongst the available alternatives. The decision maker is required to weigh all the negatives and positive aspect of each alternative before considering the best alternative. In order to make the decision effective the decision maker should be able to forecast the outcome pertaining to each alternative as well.

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