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The tendency to hold onto losing stocks in the hope that they will recoup is called loss aversion.
Loss aversion is a cognitive bias that explains why the pain of loss has twice as much psychological impact as the joy of winning. Losing money or another valuable item can feel worse than gaining the same. This principle is prominent in the field of economics. What distinguishes loss aversion from risk aversion is that the utility of monetary rewards depends on what has been previously experienced or expected.
In the realm of behavioral choice, 'loss aversion' is a behavioral phenomenon in which individuals exhibit greater sensitivity to potential losses than gains. Conversely, “risk-averse” people have an increased sensitivity/aversion to options with uncertain outcomes.
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Answer:
William James
Explanation:
In psychology, William James has given the school of Functionalism. He has been considered as the first person to teach psychology in the U.S. He was known as the father of American psychology. He was highly influenced by the work of Charles Darwin.
Functionalism: William James had developed the theory of functionalism to search for behavior and consciousness. It was an effort to understand the mental processes of an organism. It is influenced by the Darwinian thinking that is being focused on the attention regarding behavioral purpose being modified over many years of human beings existence.
Answer and Explanation: The gaseous sphere surrounding Earth is called the atmosphere. The atmosphere is one of four subsystems on Earth. The other three spheres of Earth...
