单选题

According to behavioral finance, observed overreaction in securities markets most likely occurs due to:

A、 loss aversion.
B、 gambler's fallacy.
C、 disposition effect.

【正确答案】 A

【答案解析】

A is correct. According to loss aversion related arguments in behavioral theories, investors dislike losses more than they like comparable gains. Thus, such a behavioral bias can explain observed overreaction in markets.