Riskalyze Blog

Helping Advisors Empower Fearless Investing.

Riskalyze 101: What is Prospect Theory?

Want to know what makes Riskalyze tick? Today, we’ll discuss the behavioral finance framework that started it all—Prospect Theory. Prospect Theory is an academic framework that won the Nobel Prize in Economics in 2002. It incorporates psychology into economic models and examines aversion to risk through a behavioral…