The theory which stresses the tendency of investors to react differently when faced with a potential loss versus a potential gain is called the _____ theory.

Question

Quizplus · Accepted Answer

The theory which stresses the tendency of investors to react differently when faced with a potential loss versus a potential gain is called the Prospect theory. It is a part of Behavioral finance, which involves the study of how psychological factors influence investor behavior and markets.

The Theory Which Stresses the Tendency of Investors to React