Multiple Choice
An investor purchases shares of an index fund.The investor could take on the same level of risk by taking out a loan and purchasing a higher risk specialty fund.The Sharpe measure on this complete portfolio is higher than her existing investment.What behavioral concept prevents the investor from taking out the loan and investing in the index fund?
A) Framing bias
B) Excessive volatility
C) Loss aversion
D) Mental accounting
Correct Answer:
Verified
Correct Answer:
Verified
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