The evolution of risk theory through three stages

The evolution of risk theory through three stages: from the earliest expected value theory (expectedvalue theory) to the later theory of expected utility (expectedutilitytheory), to the latest prospect theory (prospecttheory). which prospect theory is a description of the most powerful theory. .general, Herve leger the prospect theory has the following three basic principles: (a ) Most people in the face of risk aversion is obtained when the; (b) the loss of most of the time in the face of risk preference; (c) people to be more sensitive than the loss.
prospect theory has many applications . In addition to the examples discussed above, the Xi professor also talked about another application: how to publish good news and bad news. How to publish news and even can affect the stock market. If a company to its shareholder shareholders announced a good news, then in what way it announced the good news can have a positive effect? If you want to publish is a bad news, the company what to do to minimize the negative impact of the news what? .Professor Xi spoke of the first four principles proposed by the Thaler: .(a) If you have some good news to be released, they should be published separately.