Markets: A Rigorous Course
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M14 · Problem 13 ★★ Check

Measure your own disposition effect

Over a year of sale days your journal shows: realised gains 60, paper gains 240, realised losses 30, paper losses 270. (a) Compute PGR and PLR. (b) Test H0H_0: PGR = PLR with a two-proportion zz-test. State the assumption that makes this test questionable. (c) What rule in a trading plan most directly targets this behaviour?

Answers

Commas, ₹, % and 1e-3 notation are accepted.

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Solution

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