Question

Question 4 1 pts Which of the following statements relating to the biases of investors is least likely to be false? The bias pertaining to the willingness to realize higher gains but aversion toward accepting higher risks is called gambler's fallacy. Investors are affected by the decision of their colleague investors. This is called disposition effect. Investors assume good businesses or good markets are automatically good investments.

Answer 1

Investors assume good businesses or good markets are automatically good investments.

This statement is least likely false

Gambler's Fallacy is a bias that events that occured frequently in the past is less likely to occur in future.

Disposition effect is a bias where investors sell assets that have increased in value while holding assets that has fallen.