Behavioral Finance
Expected utility and prospect theories
What is the difference between expected utility and prospect theories?
Read the following article about Confirmation Bias.
https://www.sciencedaily.com/terms/confirmation_bias.htm
You own stock of Apple, and you read that they will be introduce the next generation of the iPhone in two months time.
Will confirmation bias lead you to overreact positively, negatively or neither to this news?
You should think whether the ownership of Apple stock implies you are already bullish about its prospects?
Momentum is an anomaly that gives those subscribing in efficient markets the most trouble. What is Momentum in stock prices? Why is this a problem for the efficient market hypothesis?
