When Prospect Theory uses rank dependent probability weighting functions it is known as Cumulative Prospect Theory.
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Q2: Under expected utility theory, risk aversion implies
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
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
Q12: Under expected utility theory, which of
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