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In 1997 CSX Successfully Purchased a Significant Share of Conrail

Question 43

Multiple Choice

In 1997 CSX successfully purchased a significant share of Conrail. Immediately after the first offer was announced and the acquisition eventually consummated, the price of CSX fell below preacquisition levels and took many years to recover. This may be an example of ________.


A) loss aversion
B) mental accounting
C) overreaction
D) managerial overconfidence

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