Question: 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

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*

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Subjective norms, i.e. the norms of the target group

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