Investors in Vietnam Prefer Risk Over Certainty, Study Finds.
The study aimed to find evidence of prospect theory in Vietnam by conducting experiments. The researchers discovered that investors in Vietnam tend to prefer risk over certainty when faced with low profitability, but become more risk averse as returns increase. They also found a strong relationship between loss aversion and anchoring and overreaction, but no clear correlation between loss aversion and overconfidence. These findings provide insights into how behavioral biases can impact stock market decisions in Vietnam.