Question
2.Are risk aversion and loss aversion the same thing? If not, how do they differ? 3. is risk aversion a good thing? Are there some
2.Are risk aversion and loss aversion the same thing? If not, how do they differ?
3. is risk aversion a good thing? Are there some situations when you should be risk averse, and others where you should not? If so, provide examples.
4 it is common for baseball batters to have averages of 450 or above early in the season (meaning they get a hit more than 45% of the time they are at bat), but very rare for someone to finish the season with a batting average that high. Why is this?
7. how might the Disposition Effect be explained by the Prospect Theory value function?
8. what is the relationship between "predictability "and "serial correlation"? why is serial correlation of stock prices potentially a more serious problem for the Efficient Markets Hypothesis than simple predictability?
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