The price of your investment increases 20% one month after you buy it. You do not believe that the stock's prospects have changed. Which one of the following actions would indicate the lowest amount of risk aversion?

A. You hang on to the stock, anticipating that it will go higher.
B. You buy more stock, anticipating that it will go higher.
C. You sell all of your stock holdings immediately.
D. You sell half of your stock holdings and invest the proceeds in other areas of your portfolio.


B. You buy more stock, anticipating that it will go higher.

Business

You might also like to view...

A graphical representation of a series of ideas or thoughts or decisions of a person or a team best describes

A) nominal group technique. B) SWOT analysis. C) QFD. D) TMAP.

Business

The marketing channels for services are usually

A. complex and multifaceted. B. characterized by two to three intermediaries. C. dependent on the geographical location of the consumer. D. determined by the customer. E. direct from provider to customer.

Business

To obtain a search warrant, law enforcement officers must convince a judge that they have reasonable grounds to believe a search will reveal evidence of a specific illegality

Indicate whether the statement is true or false

Business

Explain how a dividend reinvestment plan is similar to compounding and the time value of money

What will be an ideal response?

Business