In Terms of Loss Aversion Theory It Is Generally Accepted

question 9

Multiple Choice

In terms of loss aversion theory it is generally accepted that investors:

• A) consider losses far more undesirable than equivalent gains.
• B) have an a degree of aversion to losses which is counter to efficient market theory.
• C) are more likely to sell losing stocks than winning stocks.
• D) both a and b

---

Definitions:

Adolescence

The transitional stage of physical and psychological development that occurs between childhood and adulthood, characterized by rapid physical growth and psychological changes.

Generativity

In Erikson's theory of psychosocial development, a stage where adults seek to contribute to society and support future generations.

Ego Integrity

A sense of completeness and fulfillment in life reached in old age, according to Erik Erikson's theory of psychosocial development.

Middle-Aged

A life stage typically between the ages of 40 and 65, characterized by transitions in physical, psychological, and social domains.