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Question 8 Discuss and clarify the following, using diagrams and drawing from theory to illustrate: It has been observed that investors' attitudes towards risk can

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Question 8 Discuss and clarify the following, using diagrams and drawing from theory to illustrate: It has been observed that investors' attitudes towards risk can be inconsistent. For example, when faced with a gamble, they show risk aversion for gains that occur with a high probability and for losses that occur with a low probability; while they show risk seeking behaviour for gains that occur with a low probability and for losses that occur with a high probability

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