Consider the following information for three stocks. Stock Home Depot (HD) Wal-Mart(WMT) Safeway(SWY) Purchase price $53.33 $34.78 $32.00 Selling price $40.00 $40.00 $40.00 Return -25% 15% 25% Which of the following is the MOST LIKELY action of investors affected by disposition effect?

A. Sell Home Depot because the losses can help reduce tax liability. B. Sell Safeway because it is a winner stock. C. Sell Home Depot because it is a loser stock. D. Sell Wal-Mart in order to lock-in the tax.