1) A. Kumar tells his broker that he does not want to sell his stocks that are below the price he paid for them. He believes that if he just holds on to them a little longer they will recover, at which time he will sell them. What behavioral characteristic does Kumar have as the basis for decision making?

a. Conservatism

b. Representativeness

c. Loss aversion

B. After Borat sells a stock, he avoids following it in the media. He is afraid that it may subsequently increase in price. What behavioral characteristic does Borat have as the basis for his decision making?

a. Anchoring

b. Representatinveness

c. Regret aversion