BEHAVIORAL FINANCE QUIZ #2

It refers to the movements of money into and out of a business, categorized as cash flows from operations, investing and financing.

Meaning of GAAP?

A set of rules that encompass the details, complexities, and legalities of business and corporate accounting.

It refers to projected or forecasted earnings.

Is the excess return earned by the investors when they invest in the stock market over a risk-free rate?

It relates to the tendency of investors to sell that have increased in value, while keeping assets that have dropped value.

It is a concave for gains and convex for losses.

Is a probability weighting for integral part of descriptive theories of choice under risk such as prospect theory.

Also known as Frame dependence or mental accounting.

Probably done or bring psychology part into the heart of economic analysis than any other approach.