The tendency of investors to take greater risks after a large loss and fewer risks after a large gain can be attributed to
A) overconfidence.
B) the "house money" effect.
C) loss aversion.
D) representativeness.
Answer: D
The tendency of investors to take greater risks after a large loss and fewer risks after a large gain can be attributed to
A) overconfidence.
B) the "house money" effect.
C) loss aversion.
D) representativeness.