1. In the context of Prospect Theory, which of the following is NOT a key principle of the theory?

a. People are risk-averse in the domain of gains, but risk-seeking in the domain of losses

b. People tend to overweight small probabilities and underweight moderate to high probabilities

c. Losses loom larger than gains of the same magnitude

d. People make decisions based on relative rather than absolute values

e. People tend to have a preference for a certain level of wealth, known as the "hedonic level"