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Martha Refuses to Invest Her Retirement Money in Stocks or Bonds

Question 33

Multiple Choice

Martha refuses to invest her retirement money in stocks or bonds as she is afraid that if she does, she will lose money this year. Martha is displaying a characteristic known as:


A) frame dependence.
B) regret aversion.
C) mental accounting.
D) house money.
E) myopic loss aversion.

Correct Answer:

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