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Behavioral Portfolio Theory 2 – SP/A Theory

Behavioral Portfolio Theory 2 – SP/A Theory

Last time we began our discussion of Behavioral Portfolio Theory with a look at Safety-First Portfolio Theory (SFPT), which basically posits investor motivation to be to avoid ruin. An extension to SFPT was introduced in 1987 by Lopes, named SP/A Theory.

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Copyright 2011 Eric Bank, Freelance Writer