You own two stocks, one whose value depreciated drastically in the last week, and one whose value increased by 80% last week. If you are forced to sell one, which one would you pick?
A)The one that increased in value, to take advantage of the capital gain.
B)You are indifferent because you invest in the market for fun, not income.
C)The past performance is irrelevant for this decision.
D)The one that has fallen in value, to salvage at least a part of its value.

Question

Quizplus · Accepted Answer

Past performance does not necessarily predict future results, so it should not be the sole factor in deciding which stock to sell.

You Own Two Stocks, One Whose Value Depreciated Drastically in the Last