Instructions: After reading the case, answer each question completely using external and internal references (the book or Investopedia). Each answer should be completed in your own words. In addition, the response should be a complete answer (one sentence answers will not be accepted).
1. In 300 words, summarize the case. What are the key points?
Explain what is meant by behavioral finance? How is this different than traditional finance?
2. Describe what is depicted in Exhibit 5. What does this mean for finance theory?
3. In detail, describe at least five of the behavioral factors examined by JP Morgan. In your description, define the factor, as well as how an investor can take advantage of these factors.
4. JP Morgan wants to expand its BF program overseas. What problems do you foresee for international expansion? Does culture matter? If so, give examples of where culture and biases clash.
5. What is the Wealth Sign to financial advising? How does this contrast to traditional methods? Are their similarities?
link to the reading project:
https://sycamoresindstate-my.sharepoint.com/:b:/r/personal/blake_rayfield_indstate_edu/Documents/Course%20Materials/FIN%20434/Projects/JP%20Morgan%20Case%202.pdf?csf=1&web=1&e=Y1UcZh
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