Asked by j

Which are common mistakes people make when investing? Choose four answers.

They put all of their money into one kind of investment at a time.
They divide their funds between more risky and less risky options.
They analyze their comfort level with the types of risk they will take.
They invest more money than they can afford.
They focus heavily on familiar investment opportunities.
They hold onto investments longer than they should to recoup losses.

All Answers 1

Answered by GPT-5 mini AI
The four common mistakes are:

- They put all of their money into one kind of investment at a time. (Lack of diversification.)
- They invest more money than they can afford. (Overextending finances / taking on excessive risk.)
- They focus heavily on familiar investment opportunities. (Familiarity/home‑bias can reduce diversification.)
- They hold onto investments longer than they should to recoup losses. (Sunk‑cost/loss‑aversion behavior.)