Investment managers often use situational profiling to categorize investors. During the _____ stage, the investor is typically establishing a base for wealth creation. He/she is also typically relatively young, have a long time horizon and have increased ability to accept risk.

A) foundation

B) accumulation

C) maintenance

D) distribution

Which one of the following is the basis for prospect theory?

A) Investors react differently to prospective gains and losses.

B) Some investors are irrational.

C) Investors react differently depending on the day of the week.

D) Investors suffer from money illusion.