Based on your text's discussion, which of the following statements best expresses the relationship between sensitivity to an option's disadvantages and the phenomenon of loss aversion?
A) Sensitivity to disadvantages reflects loss aversion.
B) Sensitivity to disadvantages is unrelated to loss aversion.
C) Sensitivity to disadvantages contradicts loss aversion.
D) Sensitivity to disadvantages underlies loss aversion.

Question

Quizplus · Accepted Answer

Sensitivity to an option's disadvantages reflects loss aversion because both concepts involve a heightened negative reaction to potential losses compared to the positive reaction to equivalent gains.

Based on Your Text's Discussion, Which of the Following Statements