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Kimbo Slice has several different places where he has assets in which he manages as separate accounts such as his checking account which he uses for short term cash and emergency needs, his 401(k) account for retirement, and his children’s college fund. In his 401(k) he owns a small cap stock in a company which makes catheters to be used in experimental cancer treatment in which the catheter is used to deliver cancer killing drugs to hard to reach tumors in the body. The stock has recently taken a downturn in price due to the FDA not approving their most recent catheter. As a result of the downturn in price, Slice purchases more of the stock in hopes of recouping his losses at some future time. Slice’s management of his portfolio is indicative of: A. money illusion and fear of regret. B. mental accounting and loss aversion. C. asset allocation and pyramiding. |