Good morning, you hear Stephanies voice from across the room.

Just had a great jujitsu workout, how are you doing?

Frustrated by the fact that you have not been to the gym in three weeks, you do not respond.

Nice work with Violet, your insights were very useful.

You nod knowingly. Stephanie then asks if you would be willing to make a presentation tomorrow to the managing partners. Shocked and honored by her confidence in you, you quickly agree. Do you have a particular topic in mind? you query.

Indeed, Stephanie chimes back as she continues, Given the new economic and market realities prevailing since the 2008 great recession including employment opportunities for yourself and opportunities for our firm, the managing partners would like you to explain in detail the four (4) most important Behavioral Finance lessons that can be of value to you and our firm going forward. I would like to emphasize going forward because the partners would like to know how to apply these lessons for the benefit of the firm and to enhance your career development. Please give your presentation from the perspective of your job; your present job or a job that you envision you may have later on, thanks! You notice Stephanies new Samsung Galaxy S6 Edge lights up as she walks down the hall. Maybe if this presentation goes well, you can reward yourself with a new device.

Describe Siosans utility function. Contrast her utility function with that assumed in traditional finance theory, 2) Discuss what biases Siosans behavior reflects, 3) Explain how a rational economic individual in traditional finance would behave differently with respect to each bias, and 4) Determine whether your observation about Siosans retirement portfolio allocation is correct. Justify your response.