In this paper, we explain main concepts of Prospect Theory and Cumulative Prospect Theory within the rational dynamic … asset pricing framework. We derive option pricing formulas when asset returns are altered by a generalized Prospect Theory … Theory value functions and probability weighting functions consistent with rational dynamic pricing theory. After the …

strategies in finance without delving too far into theory. Written by the experienced author team of Frank Fabozzi and Pamela … -- Contents -- Preface -- Chapter 1: What Is Finance? -- CAPITAL MARKETS AND CAPITAL MARKET THEORY -- FINANCIAL MANAGEMENT …

types of risks faced in investing, company analysis, valuing common stock, portfolio selection, asset pricing theory, and …