medium · Certified Financial Planner Investment Planning
Yamamoto holds a large position in a technology stock with a cost basis of $40,000 and a current FMV of $150,000. She is reluctant to sell because she 'believes in the company' despite its high volatility.
This behavioral tendency to overvalue an asset she already owns is known as:
- Anchoring.
- Mental accounting.
- Confirmation bias.
- Endowment bias.
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