Over the past six months,you have watched as your parent's retirement savings have declined in value by 45 percent due to a severe financial market downturn.As a result,you have decided that you will never invest in stocks for your own retirement but will instead keep all of your money in an insured bank account.Which behavior characteristic have you developed as a result of the market downturn?

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This behavior characteristic is myopic loss aversion, which is the tendency to focus excessively on short-term losses at the expense of long-term gains. The fear of losing more money in the stock market is causing the individual to avoid investing altogether and to prioritize the perceived safety of insured bank accounts, even though this strategy may not be optimal for long-term retirement savings.

Over the Past Six Months,you Have Watched as Your Parent's