1. Loss aversion in a Prospect Theory described by a parameter >1 can model behaviour of subjects

a. who are risk neutral for gains

b. none of the answer is correct

c. who are risk loving for gains

d. who are risk averse for gains.

2. Which of the following statements is correct?

Long run reversal ...

a. cannot be explained

b. can explain if investors do not maximize their wealth

c. none of the answers is correct

d. cannot help to explain the disposition effect

3. Which of the following statement is correct?

Risky behavior:

a. investors cannot show ambiguity aversion and risk loving behavior in one decision

b. investors can show ambiguity aversion and risk loving behavior in one decision

c. none of the answers is correct

d. investors cannot be ambiguity neutral

4. Which of the following statement is correct?

A subject who has a utility function according to Prospect Theory and a linear probability function as described by Prospect Theory maximizes

1. expected gains
2. none of the answer is correct
3. expected payoff
4. expected survival rate

5. Get Evenitis

a. violates the random walk hypothesis

b. can occur if investors make losses

c. describes that observation that investors always lose money after a loss

d. none of the answer is correct

6. Which of the following statement is correct?

Ambiguity l

1. Ambiguity aversion can be explained by risk aversion
2. Investors are ambiguity averse for all decisions they make
3. Investors cannot show ambiguity loving behavior
4. None of the answers is correct.