Identifying Loss Aversion in Client Behavior

As a wealth manager, you are assessing the investment preferences of a client who has recently come into a substantial inheritance. The client has shown a significant aversion to losses and exhibits a tendency to focus more on their potential losses rather than their potential gains, even when the expected return is much higher for a riskier investment. This behavior can be indicative of certain psychological biases that influence their decision-making process.

Which of the following biases is most likely affecting the client's investment decisions?