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An investor needs cash to pay some hospital bills. He is willing to use his dividend income to pay the bills but he will not sell any stock to do so. He is engaging in________.
a. overconfidence.
b. representativeness.
c. forecast errors.
d. mental accounting.

Respuesta :

pristina

Answer:

d.mental accounting is the correct answer.

Explanation:

  • An investor is engaging in mental accounting because mental accounting occurs when someone puts their cash into separate sections based on personal criteria.
  • The mental accounting concept was developed by Richard H. Thaler in the year 1999 that concerned with budgeting and categorizing the investments.
  • Mental accounting motivates people to take irrational expenditure determination.

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