Old Behavioral question

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“i will not sell any of my company stock because I know my company and I believe it has excellent prospects in the future”
That’s the statement. What behavioral concept do you guys think that is? I got it wrong and I’ll put the answer after but didn’t want to lead you guys to the answer so will post it later.
Thanks all
 
Endowment bias is part of L3 curriculum and, IMO is linked to situation described above. Overconfidence bias might be, but I’d say is rather referred to individualists who consider themselves unfailing in stock picking for example. I’d rather chose Endowment bias as the first choice and there is also a component of conservativism.
 
So this is the solution. I had overconfidence as well and I also thought endowment because he’s adding value but at the end I chose OC.
Answer: Representaviness
He is confusing his company (which may well be a good company) with the company’s stock (which may or may not be an appropriate holding for his portfolio and/or a good investment) and its future performance. This can result in employees overweighting their company stock resulting in an under-diversified portfolio.
I dont understand the solution. I would’ve never guessed that.
 
Well you said it, it is an old question. Trends have changed and correct answers are OC and Endow. bias nowadays.
 
i think endowment bias would be more appropriate IF they said he was the (business owner and was reluctant to sell the company) implying an emotional attachment to “his baby”.. there is also a case for illusion of control (if he thinks his hard work/effort will make the stock price go up).. really depends on how the question is worded.. this question is just hard as is
 
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