AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 71 Topic 8 Discussion

AAFM Chartered Wealth Manager (CWM) Certification Level II Examination CWM_LEVEL_2 Question # 71 Topic 8 Discussion

CWM_LEVEL_2 Exam Topic 8 Question 71 Discussion:
Question #: 71
Topic #: 8

Section A (1 Mark)

According to Prospect Theory, investors are more concerned with changes in wealth than in returns. Prospect Theory suggests that investors:


A.

Are Risk Averse


B.

Can be loss averse


C.

Place more value on gains than on losses of equal than on losses of equal magnitude


D.

None of these


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