Salient to Investors:

People make more rational decisions when money-related choices were posed in a foreign language that they had learned than when they were asked in their native tongue.

People are more risk-averse when an impersonal decision is presented in terms of potential gain than when it is framed as a potential loss even when the outcomes are equivalent.

People expect a personal loss will be more painful than an identical gain will be pleasant, so the reward of winning must be disproportionately large for us to take a bet, such as gambling with our own money. The foreign-language effect prevailed.

Boaz Keysar at University of Chicago said that when people use a foreign language, their decisions tend to be less biased, more analytic, more systematic, because the foreign language provides psychological distance.

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