1. EC4024 Lecture 17: Behavioural Finance 1
Stephen Kinsella: www.stephenkinsella.net

2. This Time
RECAP:
EMH/AMH
Expected Utility Theory
Behavioural Finance
Prospect Theory

3. Recap
Efficient Markets Hypothesis
Adaptive Markets Hypothesis
Expected Utility Theory

4. Expected Utility Theory www.xkvd.com

5. Prospect Theory
Kahneman Tversky (1979)
Theory is: people treat losses
differently to gains.

6. Derivation

7. Application

8. Next Time
Anomalies
Read Liebowitz Thaler