Louise and Christopher Maclin live in London, United Kingdom, and currently rent an apartment in the metropolitan area. During an initial discussion of the Maclinsâ€™ financial plans, Christopher Maclin makes the following statements to the Maclinsâ€™ financial adviser, Grant Webb:
Â a. â€œI have used the Internet extensively to research the outlook for the housing market over the next five years, and I believe now is the best time to buy a house.â€
Â b. â€œI do not want to sell any bond in my portfolio for a lower price than I paid for the bond.â€
Â c. â€œI will not sell any of my company stock because I know my company and I believe it has excellent prospects for the future.â€
For each statement ( a )â€“( c ) identify the behavioral finance concept most directly exhibited. Explain how each behavioral finance concept is affecting the Maclinsâ€™ investment decision ma king.