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Which of the following statement is FALSE? Behavioral finance addresses issues such as reasoning errors that affect investment decisions. Prospect theory claims that investors creates

Which of the following statement is FALSE?

Behavioral finance addresses issues such as reasoning errors that affect investment decisions.

Prospect theory claims that investors creates patterns in random events.

Loss aversion is the reluctance to sell a security after it has decreased in value.

Snakebite effect refers to an unwillingness to take a risk after a loss.

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