Question

Joel and Liza are having a disagreement over one of their stock investments, which just lost 15 percent in a short period of time. Liza has a very high risk tolerance, but Joel has a low risk tolerance. What would Liza argue?
a. Buy more stock at the lower price
b. Hang onto the stock until the price climbs again
c. Sell half of the stock and invest in a more reliable company
d. Sell all of the stock before it loses more value

Answer 1

B.

It says Liza is risk tolerant, therefore it would make sense that she would hold on to these stocks as risk tolerant people often hold onto stocks in the long term.

Answer 2

Answer:

The correct answer is B (Hang onto the stock until the price climbs again)

Explanation:

As Joel and Liza are having a disagreement over their stock investments, I think the best option is B as they also lost 15% in a short period of time. So as, it says Liza is hazard tolerant, hence it would bode well that she would clutch these stocks as hazard tolerant individuals regularly clutch stocks in the long haul.