Which of the following statements accurately reflects framing bias in investing?

Framing bias in investing refers to the phenomenon where individuals' decisions are influenced by the way information is presented rather than just by the information itself. This means that the context or framing of information can significantly affect how investors perceive risks and opportunities, leading to inconsistent decision-making.

The correct statement highlights that responses can vary dramatically based on how information is presented. For example, if an investment is portrayed with an emphasis on potential gains, an investor may have a more favorable view compared to when the same investment is framed in terms of potential losses. This inconsistency in decision-making based on presentation is a key characteristic of framing bias.

In contrast, some other statements do not capture the essence of framing bias. For instance, adopting a consistent approach to all types of investments suggests a rational perspective that does not account for the emotional and psychological influences that framing bias encompasses. Similarly, focusing on long-term performance over short-term fluctuations reflects a disciplined investment strategy but does not directly relate to how information presentation affects decision-making. Finally, the idea that investors always act according to rational analysis ignores the behavioral finance insights that framing bias exposes, showing that emotions and biases can lead to irrational decisions.