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which scenario best describes loss aversion? daniel decides to invest i…

Question

which scenario best describes loss aversion? daniel decides to invest in stocks and bonds after carefully researching and understanding the market. emma decides not to purchase a pair of limited - edition sneakers she likes in case they go out of style quickly. noah doesnt invest in his friends startup because he fears the business might fail and he will lose money. sophia sticks to buying cds for music because she is uncomfortable with the idea of using online streaming services.

Explanation:

Brief Explanations

La aversión a las pérdidas es el hecho de preferir evitar pérdidas a obtener ganancias equivalentes. Noah no invierte en el emprendimiento de su amigo por temor a perder dinero, lo que muestra aversión a las pérdidas. Daniel invirtiendo después de la investigación no muestra aversión a pérdidas. Emma no compra zapatillas por temor a que salgan de moda, no por evitar pérdidas financieras. Sophia prefiere los CD por incomodidad con el streaming, no por evitar pérdidas.

Answer:

C. Noah doesn't invest in his friend's startup because he fears the business might fail and he will lose money.