Last time we went through a rigorous process of eliciting prior beliefs about 5 stocks, exploratory data analysis and quite advanced descriptive stats. The last part of the assignment has the goal of drawing connections to the behavioral economics principles. A lesson learned for now, is that there are many pitfalls even in most innocently looking questions.
Part IV. Portfolio Construction by Simulation Before we dig in, I would like to suggest the following reading "Please no, not another bias" by Jason Collin.
This is an assignment for the Behavioral Economics class at Quantitative Economics Masters taught by prof. dr. Anamaria Aldea. The subject is refreshing in the sense that it brings back the real world into the classroom with a show me the evidence / data attitude.
Nonetheless, this is hard to deliver as experimental data is scarce and classroom experiments involving a small sample of people with neoclassical training are hardly representative.