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Jane has thoroughly analyzed a newly issued stock and concluded that it is highly undervalued. However, she discovers that many hedge funds have shorted the

Jane has thoroughly analyzed a newly issued stock and concluded that it is highly undervalued. However, she discovers that many hedge funds have shorted the stock.

As a result, she decides against investing in the stock and instead purchases a well

-

diversified index fund. What behavioral bias is Jane displaying?

Mental Accounting

Disposition Effect

Conservative Bias

Regret Avoidance

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