Question: Under prospect theory diminishing sensitivity function investors will be more sensitive when their investment changes from 500 to 600 compared to from 0 to 100

Under prospect theory diminishing sensitivity function

investors will be more sensitive when their investment changes from 500 to 600 compared to from 0 to 100

investors tend to become less sensitive when facing huge losses

investors tend to hold stocks that are losing money to avoid realizing loss

investors seek big wins with very small probabilities.

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