Individuals Tend to Have a Negative Reaction to Losing an Amount

question 5

Multiple Choice

Individuals tend to have a negative reaction to losing an amount of money-a reaction that is stronger in magnitude than the positive reaction associated with gaining the same amount of money. This is referred to as

• A) risk tolerance.
• B) market irrationality.
• C) loss aversion.
• D) risk avoidance.

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Definitions:

Chorionic Villus Sampling

A prenatal test where a sample of chorionic villi from the placenta is obtained to test for genetic abnormalities.

Genetic Disorders

Diseases or conditions that result from abnormalities in an individual's DNA, often inherited from one's parents.

Placenta

An organ that develops in the uterus during pregnancy, providing oxygen and nutrients to the growing baby and removing waste products.

Phenotypic Plasticity

The degree to which the phenotype is open to influence by the environment rather than determined by the genotype.