Empirical findings on prospect theory suggest that investors are:

1-risk-taking regarding losses. 2-always risk-averse.

3-neutral regarding risk.

Which one of the following is an example of mental accounting?

1-associating a security's gains or losses based on its purchase price

2-comparing the gains and losses on a portfolio to those of the overall market.

3-computing the amount of tax due on the gain from a stock sale.