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Disposition effect suggests that investors keep the loosing stocks for too long and sell the winning stocks immediately. Using the figure below, and mental accounting

  1. Disposition effect suggests that investors keep the loosing stocks for too long and sell the winning stocks immediately. Using the figure below, and mental accounting please explain the disposition effect in the stock market. (Please refer to the necessary concepts in the literature)

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Value V(x) V (26) Purchase Price P V (G) Current Price P-L P-21 P+26 Gaia PG Current Price Loser Stoeko "Winner Stoek." V(L) V(-2L)

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