What is the best definition of myopic loss aversion?
A) The tendency to focus on avoiding short-term losses, even at the expense of long-term gains.
B) The tendency to avoid making a decision because you fear that the decision would have been less than optimal.
C) The tendency to consider something that you own to be worth more than it would be if you did not own it.
D) Confusion between real buying power and nominal buying power.
E) The reliance on instinct instead of analysis in making decisions.

Question

Quizplus · Accepted Answer

Myopic loss aversion describes the behavioral finance phenomenon where investors are overly concerned with short-term losses, which can lead them to make decisions that are detrimental to their long-term investment goals.

What Is the Best Definition of Myopic Loss Aversion