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U Question 12 3 pts Three months ago Sally purchased two stocks. The first stock Sally purchased was Target Inc. (TGT) which she bought for
U Question 12 3 pts Three months ago Sally purchased two stocks. The first stock Sally purchased was Target Inc. (TGT) which she bought for $100 per share. The second stock Sally purchased was Proctor & Gamble (PG) which she also bought for $100 per share. Today, Sally's TGT stock has increased in value to $105 per share, and her PG stock has decreased in value to $95 per share. In the meantime, the overall stock market has remained unchanged in value (ie, the S&P 500's last three-month return has been 0%). Sally is eager to sell her TGT stock in order to capture her gain on that trade, but she does not want to sell her PG stock because she would like to avoid having to recognize a loss on its trade. If there is no other relevant information affecting Sally's thinking, we might best say she is exhibiting signs of the: anchoring effect O aversion effect disposition effect O herding effect
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