Jenna Simpson, a retired investment advisor from Regina, conducted a research on Baux Inc., an aluminum mining

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Jenna Simpson, a retired investment advisor from Regina, conducted a research on Baux Inc., an aluminum mining company from Saskatchewan. She found out that the company’s stock price would suffer in the short term due to fluctuation in aluminum prices even though the stock price was expected to increase in the next 10 years due to excess demand for aluminum. Hence, she decides not to invest in the company’s stock fearing a loss in the short term. What behavioural finance concept is Jenna is exhibiting and how is this influencing her decision-making?

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Related Book For  answer-question

Fundamentals of Corporate Finance

ISBN: 978-0071051606

8th Canadian Edition

Authors: Stephen A. Ross, Randolph W. Westerfield

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