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Behavioral FinanceMedium

Angela Torres, a private wealth client, purchased Meridian Corp shares at $75. The stock fell to $52 but she refuses to sell, stating: 'I'll sell once it gets back to my purchase price.' Meanwhile, she recently sold Brightstone Energy at $43 after buying at $38, locking in a quick $5 gain. Which behavioral bias best explains Torres's pattern of holding losers and selling winners?

CFA Level III — Behavioral Finance Practice Question | AcadiFi | AcadiFi