Identify the most appropriate Investor Behaviour for the cases below, stating your justifications and solutions for each:
Question:
Identify the most appropriate "Investor Behaviour" for the cases below, stating your justifications and solutions for each:
(i) An investor visits his financial advisor with the goal of building wealth but ended up leaving with a life insurance policy. (4 marks)
(ii) "Higher values tend to make us believe that it's a better deal." For instance, a 90 percent discount is better than a 50 percent discount. (4 marks)
(iii) Susan is a risk adverse investor. She believes that all stocks are risky as she was taught that a common stock is a risky investment. She refuses to invest in stocks even her financial advisor clarified to her that blue chip stocks are relatively low risk due to the financial stability of the company.
(4 marks)
(iv) Some investors tend to buy stocks of companies whose products they like, or whose products they use frequently. (4 marks)
Research Methods Statistics and Applications
ISBN: 978-1452220185
1st edition
Authors: Kathrynn A. Adams, Eva Marie K. Lawrence