Prospect Theory Can Explain Why

question 27

Multiple Choice

Prospect theory can explain why

• A) people tend to gamble on long odds with small expected utility.
• B) people tend to sell their losing stocks and keep their winning stocks.
• C) people should only sell their losing stocks.
• D) people should never play the lottery.

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Definitions:

BRCA 1 Gene Mutation

A genetic alteration in the BRCA1 gene, increasing the risk of developing breast and ovarian cancer among other cancers.

Ovarian Cancer

A type of cancer that begins in the ovaries, characterized by the uncontrolled growth of cells in the ovarian tissue.

Lynch Syndrome

A genetic disorder that increases the risk of many types of cancer, particularly colon cancer.

Endometrial Cancer

A type of cancer that begins in the lining of the uterus, known as the endometrium, often detected by abnormal vaginal bleeding.