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1.Given a choice between a guaranteed gain of $500or a gamble with a $500expected value, a person prefers the guaranteed extra $500. But given a

1.Given a choice between a guaranteed gain of $500or a gamble with a $500expected value, a person prefers the guaranteed extra $500. But given a choice of a guaranteed loss of $500or a gamble with a -$500expected value, the same person prefers the gamble. Which concept explains this behavior?

Choose one:

A.prospect theory

B.risk aversion

C.risk taking

D.status quo bias

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