1) Which of the following statements is correct? The equity premium puzzle describes the observation... A. that ambiguity aversion explains the equity premium B. that the equity premium cannot completely be explained by risk aversion C. that returns for stocks are higher than for bonds D. none of the answers is correct

2) Get Evenitis... A. describes that observation that investors always lose money after a loss B. violates the random walk hypothesis C. can occur after investors make gains D. none of the answers is correct

3) Which of the following statements is correct? Self-control and probability weighting.. A. always determines together the decisions of an investor B. none of the answers is correct C. can both influence the decisions of an investor D. cannot together determine the decision of an investor

4) A subject whose risk attitudes are modeled by Prospect Theory with the average parameter values show for all prospects... A. risk-averse behavior for losses B. none of the answers is correct C. risk-neutral behavior D. risk-loving behavior for losses

5) In decision-making under ambiguity... A. not all possible payoffs are known by investors B. investors do not know probabilities and possible payoffs C. not all probabilities are known by investors D. none of the answers is correct

6) Which of the following statements is correct? Which of the following market anomalies cannot occur together? A. the equity premium puzzle and short-run momentum B. co-movements and the equity premium puzzle C. none of the answers is correct D. the equity premium puzzle and long-run reversal

7) Which of the following statements is correct? Home Bias describes the observation... A. none of the answers is correct B. that investors buy stocks at home C. that investors pay higher prices for domestic stocks D. that domestic stocks are overrepresented in investors portfolios