33
practice examMultiple Choice

Practice Exam

Question 33 • Personal Finance

Part A: Which action reflects emotional investing?

Answer
A
Diversifying
B
Comparing benchmarks
C
Following long-term plan
D
Selling during panic

Explanation

Emotional investing means making investment decisions based on feelings such as fear rather than a reasoned plan. Selling investments during a panic is driven by fear, while diversifying, comparing benchmarks, and following a long-term plan are deliberate investing practices. Therefore, the correct choice is selling during panic.

AI-written and checked against the verified answer.

Previous
Next