MIDTERMS: BEHAVIORAL FINANCE

Name (LAST NAMES AND INITIALS ONLY EX: SOLIS, AF)

COURSE, YEAR, AND SECTION

• BSBA 2B
• BSBA 2C
• BSBA 2E

It refers to consolidation of two or more companies to form an all-new entity with a new name.

• Merger
• Acquisition
• Consolidation
• Franchising

It is the purchase of an entity by another entity.

• Merger
• Acquisition
• Consolidation
• Franchising

This happens when one company buys another and takes control.

• Merger
• Acquisition
• Consolidation
• Franchising

This theory assumes that losses and gains are valued differently, and thus individuals make decisions based on perceived gains instead of perceived losses.

• Behavioral Portfolio Theory
• Prospect Theory
• Expected Utility Theory
• Arbitrage Theory

This theory was first introduced in 1979 by Amos Tversky and Daniel Kahneman, who later developed the idea in 1992.

• Behavioral Portfolio Theory
• Prospect Theory
• Expected Utility Theory
• Arbitrage Theory

Based on the idea that individuals make decisions to maximize their expected utility, assuming rational behavior and consistent preferences.

• Behavioral Portfolio Theory
• Prospect Theory
• Expected Utility Theory
• Arbitrage Theory

Can the market add and subtract?

• NO
• YES

These are corporate earnings paid out to stockholders.

• Profit
• Dividends
• Retained Earnings
• Withdrawals