Which Term Best Applies to the Situation Where an Investor

question 37

Multiple Choice

Which term best applies to the situation where an investor cares less about losing $1 of his profits than he does about losing $1 of his original investment?

• A)Get-evenitis
• B)Snakebite effect
• C)Familiarity
• D)Home bias
• E)House money effect

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Definitions:

Flow

A state of complete immersion and focus in an activity, where time seems to pass unnoticed.

Intrinsic Goal

Objectives pursued for their own sake, driven by inherent satisfaction or interest rather than external rewards.

Flow State

The smooth passage of time that occurs during a peak experience, when you are completely immersed in an activity in the present moment.

Competence

The ability or skill to do something successfully or efficiently.