Finance Brain
Courses
Home
Sign in
← Reference Points and Mental Accounting
1 / 3
Question
What is the sunk cost fallacy as applied to investing?
1
Over-diversifying a portfolio by holding too many positions
2
Assuming that a stock that has fallen in price will always recover
3
Refusing to invest in a sector that has underperformed recently
4
Holding an investment to avoid realising a loss, even when the money would be better deployed elsewhere
Press 1–4 to pick an answer