EXPLORING INVESTMENT DECISIONS: A COMPARATIVE STUDY USING PROSPECT THEORY
Keywords:
Abstract
This study explores the effectiveness of Prospect Theory in investment decisions. A sample of 100 participants with investment experience was divided into two groups: a traditional decision-making group and a Prospect Theory group. Both groups were presented with investment scenarios, and data was collected on the participants' investment decisions. The results revealed significant differences between the groups, with the Prospect Theory group more likely to invest in high-risk, high-reward assets and securities and to make decisions based on their perception of potential gains and losses. The findings suggest that Prospect Theory can be an effective tool for making investment decisions, but further research is needed to fully understand its applicability to different contexts and populations.
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