Identifying Emotional Bias: Loss Aversion

Jessica, a 52-year-old financial analyst, has recently experienced significant stress due to a tumultuous market and personal financial setbacks. As a result, she often finds herself fixating on her past investment decisions, which leads her to irrationally overreact to market news, causing her to frequently buy and sell her investment positions to avoid losses. This behavior is compounded by her fear of missing out on potential profits in a recovering market. In this context, which of the following emotional biases most directly influences Jessica's decision-making process?