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  • Question: Jane has thoroughly analyzed a newly issued stock and concluded that it is highly undervalued. However, she discovers that many hedge funds have shorted the stock.As a result, she decides against investing in the stock and instead purchases a well-diversified index fund. What behavioral bias is Jane displaying?Mental AccountingDisposition EffectConservative

    Jane has thoroughly analyzed a newly issued stock and concluded that it is highly undervalued. However, she discovers that many hedge funds have shorted the stock.
    As a result, she decides against investing in the stock and instead purchases a well-diversified index fund. What behavioral bias is Jane displaying?
    Mental Accounting
    Disposition Effect
    Conservative Bias
    Regret Avoidance
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