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Lecture 1: Understanding Your Financial Brain
% Loss aversion is fascinating because we seem to give a lot more
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small losses are a normal part of taking risk, and we get rewarded
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providing annual statements, which are less likely to show a loss
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averse tendencies, you can achieve a long-term bonus by accepting
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Other Behavioral Barriers
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aversion, the prefrontal cortex is also slow and gets tired easily
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tactic—for car salesmen, for example—is to overwhelm the
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