An internal evaluation of the trading behavior of three fund managers of a mutual fund company during the past year has revealed the following:
Manager X
Was slower than peers when reacting to changes in information
Manager Y
Rarely realized investment losses but realized most of the invest- ment gains
Manager Z
Tended to overreact by disliking losses more than liking comparable gains
Which of the three managers most likely displayed the disposition effect bias?
- A Manager Y
- B Manager X
- C Manager Z
