1. Which of the following statement is correct?

Risky behavior:

a. investors cannot show ambiguity aversion and risk loving behavior in one decision

b. investors can show ambiguity aversion and risk loving behavior in one decision

c. none of the answers is correct

d. investors cannot be ambiguity neutral

2. Which of the following statement is correct?

A subject who has a utility function according to Prospect Theory and a linear probability function as described by Prospect Theory maximizes

1. expected gains
2. none of the answer is correct
3. expected payoff
4. expected survival rate