Wilbur​ Rickhiser, a financial​ advisor, recently told one of his​ clients: "The biggest mistake you can make is to hold onto a stock for too long in order to avoid a loss.​ Let's say you bought a stock for​ $50 per share but that six months later the price fell to​ $40 after a poor earnings report. Many of my clients in this situation will hold the​ stock, hoping the price will later rise above​ $50. In most cases like this the price does not rise and may even fall. You must know when to cut your​ losses." Which of the following is the best explanation for​ Rickhiser's advice? A. People often fail to ignore the sunk costs of their decisions. The cost of the stock bought at​ $50 per share is a sunk cost. B. People sometimes make mistakes when they buy stocks or when they buy goods and​ services: they ignore the monetary opportunity costs of their choices. C. People sometimes buy stocks because other people are buying them or they want to appear to be fashionable. D. People sometimes make mistakes when they buy stocks because of the endowment effect.

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.