An investor is averse to experiencing losses. Which of the following behaviors will result from the loss aversion? It will lead to: A. the buying of loser stocks. B. risk-aversion behavior. C. risk-seeking behavior.
If an investor is loss averse, they may become risk-seeking in order to make up their losses quickly. They would do so by investing in more risky assets that have a chance of high returns that would cover the losses.
