In terms of loss aversion theory it is generally accepted that investors:

Question

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Loss aversion theory suggests that investors experience more pain from losses than pleasure from equivalent gains, and this aversion can lead them to make decisions that are counter to the efficient market theory. Additionally, research has shown that investors are more likely to sell losing stocks than winning stocks, which is in line with loss aversion theory. Therefore, both options A and B are true, making D the best choice.

In Terms of Loss Aversion Theory It Is Generally Accepted