Aivree Wants to Accumulate Great Wealth but She Invests All

question 3

Multiple Choice

Aivree wants to accumulate great wealth but she invests all of her funds in U.S. Treasury bills because she wants to avoid the potential losses she knows can occur in the stock markets. Aivree best illustrates which one of these characteristics?

• A) Loss aversion
• B) Gambler's fallacy
• C) Disposition effect
• D) Law of small numbers
• E) Mental accounting

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