Answered step by step
Verified Expert Solution
Question
1 Approved Answer
An Investor has identified a tiny startup company that believes will have abnormally large returns. However, she decides to instead invest in an S&P 500
An Investor has identified a tiny startup company that believes will have abnormally large returns. However, she decides to instead invest in an S&P 500 Index fund. Which one of the following behavioral biases does she exhibit?
A. Mental accounting
B. Prospect theory
C. Framing
D. Regret aviodance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started