potential gains

What Problems Does The Prospect Theory Solve?

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What Problems Does The Prospect Theory Solve? The prospect theory says that investors value gains and losses differently, placing more weight on perceived gains versus perceived losses. An investor presented with a choice, both equal, will choose the one presented in terms of potential gains. Prospect theory is also known as the loss-aversion theory. How

What Problem Does Prospect Theory Solve?

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What Problem Does Prospect Theory Solve? The prospect theory says that investors value gains and losses differently, placing more weight on perceived gains versus perceived losses. An investor presented with a choice, both equal, will choose the one presented in terms of potential gains. Prospect theory is also known as the loss-aversion theory. Why is