Which of the following best describes Joanne McHale’s behavioral characteristic in investment decisions? A. Joanne uses the ceteris-paribus heuristic. B. Joanne’s regret too heavily influences her investment decisions. C. Joanne is loss averse.
Joanne is loss averse. Because she dislikes losses so much, she is willing to take more risk to make up the losses in her portfolio. She is investing her savings in technology mutual funds that will have much higher risk
