n NISM Certifications
NSM General NISM
Medium

Why does loss aversion cause investors to make poor decisions?

Practice question from I-B2 Session 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Investors ignore profits completely

  2. B

    Investors prefer short-term gains

  3. C

    Investors lack financial knowledge

  4. Investors feel losses more strongly than gains

    Correct answer

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

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