Abraham bought shares of Searle expecting its share price to shot up once news about vaccination started to circulate. However, to his dismay, the firm’s share price dropped as investors considered the news to be false. Despite the drop in share price, Abraham was reluctant to sell his holdings. In your opinion, which of the following situation applies:

A. Frame Dependence

B. Gambler's Fallacy

C. Prospect Theory

D. Loss Aversion

Answer rating: 100% (QA)

Option B is correct Because Gamblers fallacy refers to the erroneous thin... View the full answer