QUESTION 2 Which of the following statements regarding regret aversion biasis CORRECT? I. Excess conservatism in the portfolio may occur because it is easy to see that riskler assets occasionallyunderperform II. May lead to long-term underperformance and a failure to meet goals III. It involves making decisions based on perceived gains rather than perceived losses IV. A consequence of this biasis investors telling themselves they are not to blame If others are also wrong O A. II and IV OB. 1, 11, l, and IV OC. I and I OD. 1. I and IV