Solved: Which investor seems to be more overconfident, Finance Basics

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Which investor seems to be more overconfident

Problem: Consider two investors (A and B) with the following demand curve for a stock:

A: p=100-q
B: p=150-2q

a) At a price of $50, how much will A and B purchase?

b) If the price falls to $30, who will increase their holdings more?

c) On this basis, which investor seems to be more overconfident?

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Finance Basics: Which investor seems to be more overconfident

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Finance Basics: Which investor seems to be more overconfident

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