The principle that investors slowly adjust their beliefs to new information is referred to as
A)conservatism.
B)stockholder disinterest.
C)reversal.
D)insider trading.
E)continuation.

Question

Quizplus · Accepted Answer

The principle that investors slowly adjust their beliefs to new information is referred to as conservatism. This means that investors are slow to update their beliefs or opinions based on new information or evidence, and may initially underestimate the impact of new information on the value or prospects of a particular company or investment.

The Principle That Investors Slowly Adjust Their Beliefs to New