Stocks appear to present risk, yet many people have substantial parts of their wealth invested in them.This behavior could be explained by:
A) People are irrational in their investment behavior, only focusing on positive outcomes.
B) People are not very risk-averse and do not require a risk premium for stocks.
C) Investing in stocks over the long run is not as risky as short-term holdings.
D) People are not efficient users of information.
Correct Answer:
Verified
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