What is the tendency to feel more psychological pain from losses than satisfaction from gains of the same size called? Option: Anchoring Bias (Decision Making), Loss Aversion (Behavioral Finance), Hyperbolic Discounting (Intertemporal Choice), Disposition Effect (Investor Psychology)

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What is the tendency to feel more psychological pain from losses than satisfaction from gains of the same size called?

Anchoring Bias (Decision Making)

Loss Aversion (Behavioral Finance)

Hyperbolic Discounting (Intertemporal Choice)

Disposition Effect (Investor Psychology)

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What behavioral finance concept describes the tendency to favor avoiding losses over taking risks, even when the potential rewards are higher?

Risk Aversion (Investment Strategy)

Prospect Theory (Risk-Return Tradeoff)

Zero-Sum Mentality (Market Competition)

Overinvestment Bias (Portfolio Management)

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Which of the following biases can cause investors to hold onto losing investments for too long, even when selling might be a better financial decision?

Sunk Cost Fallacy (Investment Mistakes)

Herding Behavior (Market Psychology)

Endowment Effect (Behavioral Finance)

Confirmation Bias (Information Processing)

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What is the tendency to place undue weight on recent market events and underestimate the importance of historical trends called?

Recency Bias (Behavioral Finance)

Market Volatility (Risk Management)

Confirmation Bias (Information Processing)

Regression to the Mean (Statistical Concept)

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According to the article, what is a common behavioral bias that affects investors?

"Procrastination"

"Overconfidence"

"All of the above"

"Risk aversion"

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What is the main point of the behavioral finance article mentioned in the text?

"Winning is addictive because it triggers the reflexive brain, leading to impulsive decisions."

"Options trading is similar to buying lottery tickets because both are purely based on chance."

"Lottery tickets are a good investment because the odds of winning are low."

"The reflective brain is more powerful than the reflexive brain."