When not wanting to sell a stock before you break even is it: 1) Reference Dependence (as quoted on old CFAI exams) or 2) Regret Minimization or are they the same thing?
Reference Dependence is Loss aversion, so yes, it is loss aversion, although Regret Minimzation also there (as it said in CFAI books)
I call it evenitis, but I think it’s #1 reference dependence.
another one = if u remember the stock market crash from some year and are apprehensive abt investing === thats recallability but if you personally suffered a loss last year in some asset category and don’t want to invest anymore in it … whats that ? schweser differentiates between the two… says the first is aversion to ambiguity (???) and the second is regret
this is loss aversion (classic loss aversion). depending on the entire scenario, you may be able to make a case for anchoring as well.
It can be also termed mental accounting because you are looking at each asset class in isolation and computing their profits and losses rather than combining them in a portfolio context.