Basic assumption of traditional economic models

Assignment Help Business Economics

Reference no: EM131391801

A basic assumption of traditional economic models is that human beings are rational. An investor wants to maximize returns at a given level of risk, or minimize risk at a given level of returns. However, humans face behavioral influences that could negatively impact their long term investing success. As a result, the investor many not reach their desired retirement goal.

Briefly discuss five behavioral concepts discussed in this course that may limit your chances of reaching your stated long term retirement goal.

Reference no: EM131391801

Questions Cloud

Existence or non-existence of wage discrimination : A recent Associated Press article described a class action discrimination lawsuit by female teachers against the New York City Public Schools asserting that male high school teachers are systematically paid more than female high school teachers. What..

Globalization is a term used to describe : Globalization is a term used to describe. A cartel is:

Mnc generally faced with incurring double taxation : Is an MNC generally faced with incurring double taxation on its profits in the subsidiary's country? Why or why not? "The reason the government has to step in and 'internalize' benefit and cost externalities is because people are basically selfish." ..

Absolute advantage in the production of one good : The amount of one currency required to trade for one unit of another country’s currency is known as the exchange rate. For two nations to benefit from trade requires each nation have comparative advantage in the production of one good. For two nation..

Basic assumption of traditional economic models : A basic assumption of traditional economic models is that human beings are rational. An investor wants to maximize returns at a given level of risk, or minimize risk at a given level of returns. However, humans face behavioral influences that could n..

Reserves indicates that yuan depreciation : The article on China's $4 trillion of reserves indicates that the yuan's depreciation is due to

When considering choice architecture a nudge : When considering choice architecture, a nudge:

What is the optimal two-part tariff for this monopolist : The individual demand for a product has been estimated to be qd=32−2p, the firm’s cost function is C(q)=4q+25 and the marginal cost is 4. What is the optimal two-part tariff for this monopolist?

Make alternatives equally desirable : Assume that alt. B is not replaced at the end of its useful life. if the MARR is 10% what must be the useful life of B to make Alternatives A and B equally desirable?

User Account

All Pages