Under expected utility theory, risk aversion implies a concave utility function and vice versa.
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Q1: Example 2 suggests that individuals have limited
Q3: Prospect theory is based on the notion
Q4: A gain is always greater than 0
Q5: Prospect Theory suggests that the utility function
Q6: Khaneman and Tversky proposed a unique method
Q7: When Prospect Theory uses rank dependent probability
Q8: Rank dependent probability weights are sub-additive.
Q9: In Example 3, Prospect theory can rationalize
Q10: Prospect Theory predicts that risk aversion over
Q11: What is the reflection effect?
A) The observation
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