Loss aversion

CFA Level III Portfolio Management
#1

After buying the X stock it continued to do well for a short period of time and then decreased in price below Clark’s original purchase price. Clark is reluctant to sell it in hopes of at least breaking even in the near future.

The behavior bias here is loss aversion.

Why it is not anchoring and adjustment? Clark anchors his original purchase price.

#2

I remember this. I figured that the hint is “reluctant to sell” as typically the loss aversion affects us in the way that we will not sell losers for a longer time, hoping they revert back.

But the question was not 100% clear to me either.