Conservatism Implies That Investors Are Too __________ in Updating Their

Multiple Choice

Conservatism implies that investors are too __________ in updating their beliefs in response to new evidence and that they initially __________ to news.

A) quick; overreact
B) quick; under react
C) slow; overreact
D) slow; under react Conservatism implies that investors are too slow in updating their beliefs in response to new evidence and that they initially underreact to news.