n NISM Certifications
NSM General NISM
Medium

What behavior is illustrated when investors prefer a guaranteed ₹40,000 instead of a 50% chance of winning ₹1 lakh?

Practice question from I-B5 Session 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Overconfidence bias

  2. Loss aversion

    Correct answer

  3. C

    Herd behavior

  4. D

    Anchoring bias

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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