Sampson begins a meeting with his financial adviser by outlining his investment phi$-$ joophy shown below:

joophy as shown below:

statement Number Statement

Investments should offer strong return potential but with very limited risk.

I prefer to be conservative and to minimize losses, even if I miss out on

substantial growth opportunities.

$2$ All nongovernmental investments should be in industry$-$leading and

financially strong companies.

$3$

Income needs should be met entirely through interest income and cash

dividends. All equity securities held should pay cash dividends.

$4$

Investment decisions should be based primarily on consensus forecasts

of general economic conditions and company$-$specific growth.

$5$

If an investment falls below the purchase price, that security should be

retained until it returns to its original cost. Conversely, I prefer to take

quick profits on successful investments.

$6$ I will direct the purchase of investments, including derivative securities$,$

periodically. These aggressive investments result from personal research

and may not prove consistent with my investment policy. I have not kept

records on the performance of similar past investments, but I have had

some "big winners."

Select the statement from the table above that best illustrates each of the following behavioral finance

concepts. Justify your selection.

a$.$ Mental accounting.

b$.$ Overconfidence $($illusion of control$).$

c$.$ Reference dependence $($framing$).$