Respuesta :
This asset is much riskier than his retirement portfolio, this is an example of mental accounting.
What is Mental Accounting?
Mental accounting is a behavioral economics concept introduced in 1999 by Nobel Prize-winning economist Richard Thaler that refers to the various values people place on money, supported by subjective criteria, that always has negative outcomes.
Mental accounting often leads people to form irrational investment decisions and behave in financially counterproductive or detrimental ways, like funding a low-interest savings account while carrying large credit card balances.
To avoid the mental accounting bias, individuals should treat money as perfectly fungible once they allocate among different accounts, it can be a budget account (everyday living expenses), a wealth account (savings and investments) or a discretionary spending account.
To learn more about Mental Accounting:
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