Traditional finance versus the behavioral finance

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1. Provide an overview of the traditional finance versus the behavioural finance perspectives of risk.

2. Distinguish between ‘biased judgements’ and ‘overconfidence’ as two forms of behaviour that indicate that investors do not always act rationally in making investment decisions.

3. ABC issued $1000 bonds that have an annual coupon rate of 6%. The present market value of the bonds is 1200. What is the current yield? What if the coupon is paid semiannually?

Reference no: EM132001210

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