Kevin just read an authoritative study that shows that a stock's current price on the stock market is completely unrelated to its previous price. In other words, if a stock does well one week, it may or may not do well the next week. However, Kevin still only wants to sell stocks of his whose price increased over the last several weeks because he thinks they are more likely to reverse themselves the next week. Kevin is guilty of
A. the gambler's fallacy.
B. unrealistic confidence.
C. the anchoring heuristic.
D. the availability heuristic.
Answer: A
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