You Have Saved a Total of $200,000 Over the Past

question 38

Multiple Choice

You have saved a total of $200,000 over the past several years.Jane,a trusted business associate,recently approached you with an offer.She has offered you a partnership in a new firm that she expects to be exceedingly profitable.Your initial investment in the partnership would be $125,000.However,Jane cannot give you any odds on that success occurring.You have decided to keep your $125,000 and forego this opportunity simply because you don't know the probability of success.Which one of the following behavior characteristics do you have?

• A)aversion to ambiguity
• B)recency bias
• C)sentiment-based risk aversion
• D)clustering illusion
• E)money illusion

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Definitions:

Cortex

The outermost layer of the brain, responsible for complex functions including thought, memory, sensory processing, and voluntary movement.

Whale Songs

Complex sequences of vocalizations produced by whales, particularly males, that are thought to play a role in communication and mating behaviors.

Functions

The natural purpose or activities associated with a person, organ, or system in biology, or a specific role or activity in more general contexts.