1.Explain the concept of risk2.Using an example, explain expected value as a theory of choice3.Using the St Petersburg Paradox, explain why EV is inadequate as a model of choice4.Explain why expected utility theory (EUT) is a better model of choice

1.Explain the meaning of the endowment effect2.Provide evidence for the endowment effect in investment decisions3.Discuss how the endowment effect affects investment behavior*

1.Explain the meaning of the anchoring effect2.Provide experimental evidence for the anchoring effect3.Discuss how anchoring affects investor behavior4.Discuss how anchoring affects market behavior*