Question 6There is lots of evidence to suggest that we are inclined totreat “money won” differently from “money earned.” Which of the following biases is best able toexplain this phenomenon, which often results in our being more willing togamble with money that we have won, rather than earned? 1 point Loss Aversion Risk Seeking over Losses Endowment Effect Mental Accounting Disposition Effect

Which of the following statements is LEAST consistent with the forms of human bias in decision-making covered in the lecture material on ‘Human bias and money happiness’?Question 3AnswerA Financial Adviser is more likely to be trusted by their clients than other financial advisers if they are both more charismatic and physically attractive.If an individual ‘falls in love’ with a house they are thinking of buying in an auction, they are more likely to pay a price significantly higher than it is really worth.A graduate invests in a fund that contains a diversified portfolio of stocks because they think that diversification can reduce risk without significantly reducing long-term expected future returns.An investor has lost a lot of money on a bad investment but is holding onto the investment hoping that it will increase in value sometime soon.

In the material on Framing, you were invited to respond totwo lotteries. They are replicated here.Which of the following biases and errors could explain why somerespondents to these two lotteries may apparently “flip their preferences”? Please select all that apply.1 point Risk aversion over gains Loss Aversion Risk seeking overlosses Mental Accounting Endowment Effect

State two financial methods of motivation

People tend to realise gains more than losses

Which of the following was NOT noted in the Week 7 lecture on job performance, reward and remuneration?Group of answer choicesIntrinsic rather than extrinsic motivation predicts better performanceFinancial rewards are more motivating than psychological rewardsReward and remuneration is critical for job performancePerformance can be measured in many different ways