1. A subject who has a linear utility function and a probability weighting function as described by beantwortet Prospect Theory cannot show...

The correct answer is one of the following:.risk averse behavior .risk loving behavior .risk neutral behavior .none of the answers is correct

2. Which of the following statements is correct?

In decision making under ambiguity..

a. not all possible payoffs are known by investors b. none of the answers is correct c. investors do not know probabilities and possible payoffs d. all probabilities are known by investors

3. Which of the following statements is correct?

Mental accounting..

a. does not occur it subjects maximize their utility b. does not model decisions if investors have stocks and bonds in their portfolios c. none of the answers is correct d. models that investors consider stocks and bonds together when investing

4. Which of the following statements is correct?

Which two factors can partly explain the equity premium puzzle?

a. ambiguity and risk loving behavior of investors b. none of the answers is correct c linear probability weighting and loss aversion d. ambiguity loving behavior and loss aversion of investors

5. Which of the following statements is correct?

Stock market prices cannot not follow a trend if market prices..

a. show short run momentum b. none of the answers is correct c. follow a random walk d. do not show long run reversal

6. A subject whose risk attitudes are modeled by Prospect Theory with the "average parameter values"cannot show for all prospects...

The correct answer is one of the following:. risk averse behavior for gains . risk loving behavior for gains .risk markieren neutral behavior . none of the answers is correct