Reference no: EM132353544

No introduction, table of content and conclusion. Answer the questions directly 3pages. Pls include references for each category (A-D)

A1. After going through the required readings and videos, provide a detailed analysis over what Behavioral Finance is, and why it can cause such a great effect in overall finance and investing activities.

A2. Is there a correlation between Behavioral Finance and your own personal finances? How does this concept bridge over to your own personal spending experiences? What are ways we can improve this?

B1. You have a friend who tells you that ethics are completely unimportant in business since a number of laws have been set up for us to know the rules of the game. Explain, with examples of unethical behavior noted in the past, and state if this comment is correct or not.

B2. Find an article in the TUW library that discusses budgeting and its importance in an organization. You can search for articles such as the Harvard Business Review. Share with us how the article is relevant to what we learned in this course

a. Please respond to discussion question/statement below:

1. Based on the assumption efficient capital market is characterized by rationality and risk aversion, how does a company's management select projects to maximize their owners (shareholders) wealth?

2. Interpret the "take-aways" Jones (2008) expounds upon in his discussion concerning "smart diversification.

b. Please elaborate on the discussion below:

1. Discuss the difference between diversification at the account level and at the household level and how fund quality plays a role in asset allocation decisions.

Attachment:- Reading and Background Material.rar