We examine the relationship between portfolio risk and equity returns over different investment horizons of …. They also tend to trade for stocks with lower profitability in the bull market. Nevertheless, we find that systematic risk … controlling for systematic risk …

help explain several anomalies associated with prospect theory, including probability weighting, loss aversion, and framing …. Prospect theory's four-fold pattern of probability weighting predicts that decision makers favor long-shots, avoid near sure … alternative explanation for the puzzle of why people are so risk averse for small gambles. Such behavior can arise because losing …