Recently,a Neighbor You Have Known for Years Won a Lottery

question 14

Multiple Choice

Recently,a neighbor you have known for years won a lottery and received a $250,000 prize.This neighbor decided to invest all of his winnings in a new business venture that he knew only had a five percent chance of success.Previous to this,the neighbor had always been ultra conservative with his money and had refused to invest in this business venture as recently as last week.Which one of the following behaviors most applies to your neighbor's decision to invest in this business venture now?

• A)overoptimisim
• B)affect heuristic
• C)loss aversion
• D)house money
• E)get-evenitis