QuestionJune 15, 2025

16. This type of behavioral bias impacts investment decisions in that losses have a bigger emotional impact than gains, and investors avoid them as much as possible. Loss aversion Anchoring behavior Mental accounting Home bias

16. This type of behavioral bias impacts investment decisions in that losses have a bigger emotional impact than gains, and investors avoid them as much as possible. Loss aversion Anchoring behavior Mental accounting Home bias
16. This type of behavioral bias
impacts investment decisions in
that losses have a bigger
emotional impact than gains, and
investors avoid them as much as
possible.
Loss aversion
Anchoring behavior
Mental accounting
Home bias

Solution
4.5(302 votes)

Answer

Loss aversion Explanation Loss aversion is a behavioral bias where the pain of losing is psychologically more impactful than the pleasure of gaining. This leads investors to avoid losses, influencing their investment decisions significantly.

Explanation

Loss aversion is a behavioral bias where the pain of losing is psychologically more impactful than the pleasure of gaining. This leads investors to avoid losses, influencing their investment decisions significantly.
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