Author:
Hartzmark Samuel M.,Hirshman Samuel,Imas Alex
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2. A belief in mean reversion has been offered as a potential explanation for this effect: people hold on to losers and sell winners because they believe that the former will go back up and the latter will go back down. While many studies have proposed preference-based mechanisms such as realization utility for the disposition effect;belief in mean reversion has not been ruled out -largely due to a lack of data on beliefs in trading contexts,2012
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