FINS1612 Study Guide - Final Guide: Financial Ratio, Technical Analysis, Loss Aversion
Document Summary
F prospect theory and expected utility theory are two interchangeable models of choice under risk and uncertainty. T for people who are loss averse, losses loom larger than gains. They attach greater disappointment to a loss than the happiness they attach to a gain. T it is possible to change the decisions that people make under risk and uncertainty by changing the way in which the characteristics of a potential investment decision are framed. F the economic performance of international economies has very little relevance to the expected performance of the majority of local companies listed in the share market. T high levels of economic growth in developing economies may not be sustainable in the long term and may well lead to upward wages and inflationary pressures. F changes in foreign currency exchange rates principally affect the financial markets and therefore will have little impact upon the share price of listed corporations.
