Question $15$

$6\mathrm{.}88$ pts

Behavioral finance concepts described in the text applied to stock market trading that can help explain why stock prices may not change even if the Efficient Market Hypothesis $("$EMH$")$ or the Dividend Growth Model or the Free Cash Flow model might predict a change include $q,.$

social expediency: the idea that smart, rational investors buy and sell stocks for social not economic reasons.

loss aversion: the idea that smart, rational investors may be less willing to incur a loss even if selling a stock at a loss may appear to be rational under the EMH.

buyer's remorse: the idea that smart, rational investors tend to question the validity of their investment decisions.

expectational heresy: the idea that smart, rational investors tend to believe their set of rational expectations needs to be different from other investors.