![](https://cos-cdn.shuashuati.com/pipixue-web/2020-1231-2005-12/ti_inject-812ce.png)
- assumes investors analyze risk relative to possible gains and losses - more concerned with the change in wealth than they are in the resulting level of wealth - investors assumed to place a greater value on a loss than on a gain of the same amount - investors will increase risk in order to avoid a feared loss → prescriptive