One puzzling investment behavior is the observation that traders in most asset classes tend to close out winning positions more than losing positions. Mutual fund investors, however, exhibit the opposite behavior.
For this task, you will prepare a white paper to address the reason that some assets (e.g., stocks) exhibit strong disposition effects, while other assets (e.g. stock funds) exhibit a strong anti-disposition effect and how prospect theory does, or not, account for this behavior.
Support your paper with at least five scholarly resources published in peer-reviewed journals during the past 7 years. In addition to these specified resources, other appropriate scholarly resources may be included. Be sure to include citations for quotations and paraphrases with references in APA format and style where appropriate.
Length: 5-7 pages
Your paper should demonstrate thoughtful consideration of the ideas and concepts presented in the course by providing new thoughts and insights relating directly to the topic. Your response should reflect scholarly writing and current APA standards. Be sure to adhere to Northcentral’s Academic Integrity Policy.
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