Richard Thaler offers a possible explanation for the high equity risk premium $-$ myopic loss aversion, which means:

Group of answer choices

Actual stock returns have turned out to be much higher than investors expected when they made the investment. out to be better

Investors had insufficient funds to make long term investments thereby increasing the returns for the few investors who made long term investments.

Investors think the chance of losing money is greater than it really is$,$ and they hate losses.