1. Which of the following statements is correct?

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

a. expected payoff b. expected survival rate c. none of the answers is correct d. expected gains

2. Which of the following statements is correct?

Loss aversion in Prospect Theory described by a parameter >1 can model behavior of subjects..

a. who are risk neutral for gains b. who are risk loving for gains c. none of the answers is correct d. who are risk averse for gains

3. Which of the following statements is correct?

The equity premium puzzle...

a. none of the answers is correct b. is not compatible with ambiguity aversion c. reduces the risk ofinvestors d. does not occur it subjects maximize their utility

4. Which of the following statements is correct?

Ambiguityl: a. none of the answers is correct b. investors are ambiguity averse for all decisions they make c. ambiguity aversion can be explained by risk aversion d. investors cannot show ambiguity loving behavion

5. Self-control helps to explain... The correct answer is one of the following:.the short run momentum get evenitis . the disposition effect. none of the answers is correct

6. In the loss area investors... The correct answer is one of the following:.are ambiguity loving.are ambiguity averse .cannot be ambiguity PFrage neutral. none of the answers is correct