Which One of the Following Is the Basis for Prospect

question 30

Multiple Choice

Which one of the following is the basis for prospect theory?

• A)Investors react differently to prospective gains and losses.
• B)Investors make cognitive errors.
• C)Some investors are irrational.
• D)Investors react differently depending on the day of the week.
• E)Investors suffer from money illusion.

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Definitions:

Traumatic Events

Incidents that involve exposure to actual or threatened death, serious injury, or sexual violence, leading potentially to lasting psychological impact.

Psychological Distress

A state of emotional suffering characterized by symptoms of depression and anxiety, often due to adverse life circumstances or psychological disorders.

Flashbacks

Sudden, intense, and usually disturbing re-experiences of past memories or events, often associated with psychological conditions such as PTSD.

Coronary Heart Disease

A disease in which a waxy substance called plaque builds up inside the coronary arteries, which supply oxygen-rich blood to the heart muscle, leading to heart attacks.