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Unformatted text preview: addition to the disposition effect, their will be higher volume for stocks that are bullish and lower volume for stock that is bearish as a result of people selling their gains and holding their losses. Individuals are willing to sell their gains quick compared to losers which will be held until rebounded. In a study, under a month, gains are 45 percent, 1 to 6 months were 7.8, 6 to 12 were 5.1 and more than one year was 4.5 percent. Investors acheive more pride from a larger gain but the reluctance to sell a loser is the same regardless if big or small....
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This note was uploaded on 09/13/2011 for the course FIN 250 taught by Professor Johansen during the Fall '10 term at Boise State.
- Fall '10