Question

Which two sentences indicate that Mei is making an investment mistake?
Mei is an investor. Two years ago, she bought a company’s stock at $30 per share. In the past two years, the stock price has fallen. Currently, the stock price is $15. Mei is still waiting for the price to increase and is not selling her shares. Moreover, Mei owns a portfolio that includes various stocks, bonds, and mutual funds. She constantly buys and sells various domestic as well as international stocks.

correct answer:
Currently, the stock price is $15. Mei is still waiting for the price to increase and is not selling her shares

Answer 1

The sentences that indicate that Mei is making an investment mistake include:

• Currently, the stock price is $15.
• Mei is still waiting for the price to increase and is not selling her shares.

What is an investment?

An investment is an asset that's acquired in order to build wealth.

In this case, Mei bought the company’s stock at $30 per share but now it's $15. This indicates that she made a mistake.

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