... or a high target return to participants and ask them to make independent investment decisions as the risk-free rate fluctuates around their target return and, for some of them, becomes negative. Findings Building on cumulative prospect theory, the authors find that the prevailing reference point...

...Sravani Bharandev; Sapar Narayan Rao Purpose The purpose of this paper is to test the disposition effect at market level and propose an appropriate reference point for testing disposition at market level. Design/methodology/approach This is an empirical study conducted on 500 index stocks...