Hows is the answer behavioral portfolio theory? The definition of BPT is holding a non-diversified portfolio, pyramiding, mental accounting etc.
I see that other 2 answers are no good but I dont get how answer C describes BPT作者: hardwork24 时间: 2013-4-19 19:43
i thought BPT is diversified but not efficient?作者: maxmeomeo 时间: 2013-4-19 19:49
and that is different from prospect theory/ loss aversion (choice B) how?作者: Dapper425 时间: 2013-4-19 19:53
thanks for this explanation. the way i will remember then is that prospect theory and the associated loss aversion is when you have loss aversion and sell winners too quick or hold onto losers to long–your focus is on not fear of recognizing a loss. however, for behavioral portfolio theory, the key is that you make the same decisions but IRRESPECTIVE OF FUNDAMENTIALS OR POTENTIAL. i guess you have to look out for language saying something to the effect.
