No.PZ2018052801000003
来源:
Emma Young, a 47-year-old single mother of two daughters, ages 7 and 10, recently sold a business for $5.5 million net of taxes and put the proceeds into a money market account. Her other assets include a tax-deferred retirement account worth $3.0 million, a $500,000 after-tax account designated for her daughters’ education, a $400,000 after-tax account for unexpected needs, and her home, which she owns outright.
Her living expenses are fully covered by her job. Young wants to retire in 15 years and to fund her retirement from existing assets. An orphan at eight who experienced childhood financial hardships, she places a high priority on retirement security and wants to avoid losing money in any of her three accounts.
No.PZ201805280100000301
来源:
Identify the behavioral biases Young is most likely exhibiting. (Circle the correct answers.) Justify each response.
我的答案如下：
1.loss aversion.
Young wants to avoid losing money in any of her three accounts.
2.mental accounting.
Her other assets include a tax-deferred retirement account worth $3.0 million, a $500,000 after-tax account designated for her daughters’ education, a $400,000 after-tax account for unexpected needs, and her home, which she owns outright. In fact, these are all her assets with no differences.
3.availability bias.
As an orphan at eight who experienced childhood financial hardships, she places a high priority on retirement security.
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