Piehler, Maximilian - In: Junior Management Science (JUMS) 5 (2020) 3, pp. 262-294
I test the hypothesis that investors evaluate stocks based on the prospect theory value of the distribution of past … returns. Because some investors tilt towards stocks with high prospect theory value, these stocks become overvalued and earn ….S. stock markets. In contrast to other variables know to explain returns however, prospect theory value does not lose its …