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Framing Effects in Prospect Theory Indicate That a Given Result

Question 92

Multiple Choice

Framing effects in prospect theory indicate that a given result, such as "an investment return of 10 percent,"


A) will be definitely viewed as a gain, because a loss would be a negative return.
B) can be viewed as either a gain or a loss, depending on the context.
C) will always increase the happiness of the investor.
D) will change satisfaction to an equal but opposite degree as a negative 10 percent return.

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