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katen-ka-za [31]
1 year ago
13

the tendency of naive investors to buy high (after prices have risen for several periods) and sell low (after prices have droppe

d for several periods) can be explained by the behavioral tendency known as
Business
1 answer:
Dominik [7]1 year ago
4 0

The tendency of naive investors to buy high (after prices have risen for several periods) and sell low (after prices have dropped for several periods) can be explained by the behavioral tendency known as anchoring.

<h3>What does anchoring in purchasing behavior mean?</h3>

A behavioral finance heuristic known as "anchoring" refers to the unconscious use of unimportant information, such as the price at which a security was purchased, as a fixed reference point (or "anchor") for making decisions about that security in the future.

The cognitive bias known as "anchoring" occurs when the mere existence of an initial number has an outsized impact on later decision-making. The TV's exorbitant cost acts as an anchor that encourages buyers to spend more money than they intend to. By announcing a lower price after stating a price, the anchoring effect in making purchase decision is activated. Customers will view the higher price as being more comparable to the original, lower price than the alternative prices being provided.

To learn more about purchase decision, visit:

brainly.com/question/26517026

#SPJ1

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USE THIS INFORMATION FOR THE NEXT THREE QUESTIONS. On Jan. 1st Sally buys a computer with her credit card for $500. This transac
algol [13]

Answer:

Credit card float is the difference in time between the date of purchase and date when the payment is due.

Credit card Float = 54 days

Explanation:

The purchase date is the 1st January but the has only reflected on the credit card on the 3rd but date of purchase remains the 1st.

This is exactly like in depreciation 'available for use date' and 'date of use'

available for use is used to calculate depreciation, so we start on the purchase date.

on the date when payment is due

we have 25th of Feb and the 23rd of Feb the date of payment

we take 23rd the date of payment

just like in assets if  an asset has a useful life of 3 years and is sold in the two years the only depreciation or accumulated depreciation we reflect is for the years before it is sold.

Therefore the float period is between 1 jan and 23 feb = 54days

7 0
2 years ago
U.S. residents accounted for over 75 percent of cruise ship passengers, and U.S. ports had 8 million passengers leaving on cruis
Elenna [48]

Answer:

e. External opportunity

Explanation:

An  external opportunity is an extension of the market due to some external development outside the industry. In this case, the cruise industry has benefited in a major way due to external developments.

7 0
2 years ago
Transactions The selected transactions below were completed by Cota Delivery Service during July: Indicate the effect of each tr
Bezzdna [24]

Answer & Explanation:

1.- Increase    in assets and equity

(cash is asset and common stockequity)

2.- no effect

(one asset cash is rtaded for another, supplies)

3.- Decrease in Assets and Equity

(expense decrease the cash (assets) and equity (income))

4.- Decrease in Assets and Equity

(expense decrease the cash (assets) and equity (income))

5.- Increase   in assets and equity

(cash increase equity increase (service revenue))

6.- Increase   in assets and equity

(account receivable increase equity increase (service revenue))

7.- Decrease  in Assets and Liablity

(ap decrease and cash decrease)

8.- no effect

(one asset increases cash. Another decreases, account receivable)

9.- Decrease in Assets and Equity

(expense decrease the suppplies (assets) and equity (income))

10.- Decrease in Assets and Equity

(less cash less retained earnings)

5 0
3 years ago
Give the meaning and nature of Foreign direct Investmen.​
Inessa [10]

Answer:

foreign direct investment (FDI) is an investment made by a firm or individual in one country into business interests located in another country. ... However, FDIs are distinguished from portfolio investments in which an investor merely purchases equities of foreign-based companies

6 0
3 years ago
You have a $15,000 portfolio which is invested in Stocks A and B, and a risk-free asset. $6,000 is invested in Stock A. Stock A
DerKrebs [107]

Answer:

$7073.68

Explanation:

Data provided in the question:

Worth of portfolio = $15,000

Amount invested in stock A = $6,000

Beta of stock A = 1.63

Beta of stock B = 0.95

Beta of portfolio = 1.10

Now,

Beta portfolio = ∑(Weight × Beta)

let the amount invested in Stock B be 'x'

thus,

1.10 = [($6,000 ÷ $15,000 ) × 1.63] +  [( x ÷ $15,000 ) × 0.95 ]

or

1.10 = 0.652 + [( x ÷ $15,000 ) × 0.95 ]

or

0.448 = [( x ÷ $15,000 ) × 0.95 ]

or

x = ( 0.448 × $15,000 ) ÷ 0.95

or

x = $7073.68

6 0
3 years ago
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