Case Study I:
|a.||There seems to be a clear idea about performance in stock markets: Gains and losses are effectively measured in price differences; each participant can be clearly and immediately informed about every stock price; all of the data on previous prices and market changes are accessible. Thus, the stock market seems a paradigmatic case for rational decision making.|
|b.||Stock markets are within the focus of an encompassing and still growing body of economical research and theory. We introduce Markowitz's (1952, 1959) theory of portfolio selection; but there is even more theory and research on markets, finance, and investments that has reached the status of textbook science (e.g., Sharpe, Alexander, & Bailey, 1995), notwithstanding the fully fledged professions of financial business.|
One key to understanding expertise in financial markets, from a theoretical as well as a practical point of view, is human behavior toward risk—that is,
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Publication information: Book title: The Social Psychology of Expertise: Case Studies in Research, Professional Domains, and Expert Roles. Contributors: Harald A. Mieg - Author. Publisher: Lawrence Erlbaum Associates. Place of publication: Mahwah, NJ. Publication year: 2001. Page number: 92.
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