Some recent developments in financial research focus on ways to make portfolio allocations and other investment decisions in ways that largely ignore the possible gains but protect against large losses. These tools are designed to reflect ________ behavior among investors.
A. risk neutral
B. substitution
C. loss aversion
D. anchoring
Answer:C
Some recent developments in financial research focus on ways to make portfolio allocations and other investment decisions in ways that largely ignore the possible gains but protect against large losses. These tools are designed to reflect ________ behavior among investors.
A. risk neutral B. substitution C. loss aversion D. anchoring