Question

6. (modified from text) Jill Davis tells her broker that she does not want to sell any of her stocks that are below the price she paid for them. She believes that if she holds on to them a little longer, they will recover, at which time she will sell them. What behavioral characteristic does Davis display (briefly explain)

Answer 1

Answer:

Jill Davis is displaying conservatism because she is a cautious person that does not get easily swayed by short-term movements in the market, and prefers instead to focus in the long-term.

Jill Davis also relies a lot on intuition, because there is no hard evidence that the bond prices will rise, but Jill Davis believes so for some reason.