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Section A (1 Mark)After originally investing Rs10,000 and selling your investment for Rs 12,000, you...

Section A (1 Mark)

After originally investing Rs10,000 and selling your investment for Rs 12,000, you reinvest the total amount and tell yourself that you will not be concerned if you lose Rs 2,000 in this new investment. You are likely demonstrating which type of judgment error?

A.

Mental accounting

B.

House money

C.

Regret aversion

D.

Sunk cost fallacy

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