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CFA Level 3
Portfolio Management and Wealth Planning

Behavioral Factors in Investment Decisions

Very Easy Private Wealth Management Behavioral Factors

James is a financial advisor who has been working with Patricia for several years. Recently, Patricia expressed concerns about market downturns and how they affect her investment portfolio. She has shown a tendency to react emotionally to market fluctuations, often suggesting she wants to pull her investments out during periods of market volatility. What behavioral factor is primarily influencing Patricia's investment decisions?

Hint

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