You work for an investment management organisation. Your manager is keen to learn about Prospect Theory, as he is aware of the increasing importance of insights provided by behavioural finance in financial markets. a) Identify and explain four respects in which prospect theory differs from expected utility theory (which is the basis of the 'modern theory of nance') as an approach to understanding decision making under conditions of risk. (8 marks) b) Provide examples of occasions when an understanding of the following might be of use within an investment management organisation i) the availability heuristic; ii) the substitution heuristic; iii) 'system one' thinking. (6 marks)