Theories of behavioural finance

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Ponzi scheme was coined since 1920 after Charles Ponzi because of the effects on financial markets and personal investments. Ponzi and pyramid schemes are partly blamed for the recent global financial crises. Financial market regulators in developing countries have been warned to be proactive to ensure proper financial intermediation. Behavioral finance also provides some basic facts that led potential investors to these schemes

i. Discuss three theories of behavioural finance that may influence investment in Ponzi

ii. Discuss three reasons why Ponzi Schemes maybe operated by and among the educated?

iii. Discuss the main difference between Trenor's position of investment risk measurement and that of Sharpe and use your and to deduce equation of the CAPM in each case

Reference no: EM13973483

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