5.
Mental accounting refers to the practice of treating money differently because of its origin, allocation, or purpose.
Effects:
• Illogical segregation of funds, thereby suboptimally allocating assets.
• Risking unnecessary amounts of "house money" - that is, amounts realized from investments.

5.
Mental accounting refers to the practice of treating money differently because of its origin, allocation, or purpose.
Effects:
• Illogical segregation of funds, thereby suboptimally allocating assets.
• Risking unnecessary amounts of "house money" - that is, amounts realized from investments.

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