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NatalieLove

  • 3 years ago

Last month Laura saw the value of her stock portfolio rise by $20,000. This month she saw the value of her portfolio decline by $20,000. According to behavioral economics:

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  1. NatalieLove
    • 3 years ago
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    Multiple Choice: The positive utility Laura received from seeing her portfolio value rise was equal to the disutility she felt when its value declined. Laura should not invest in stocks unless the utility she receives from gains is at least as great as the disutility she feels from losses. The positive utility Laura received from seeing her portfolio value rise was greater than the disutility she felt when its value declined. The positive utility Laura received from seeing her portfolio value rise was less than the disutility she felt when its value declined.

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