Since 1974, when the dynamic duo, Amos Tversky and Daniel Kahneman, came up "Prospect Theory" and challenged the traditional economic theories, the world of investments has undergone a sea change. Decision-making has become very complex because of the presence of a myriad of available options such as stocks, bonds, gold, property, commodities, mutual funds, life insurance and many other alternative options. As if the communication overload and multiple options were not enough, human beings have further complicated their decisions, basis their own unique distinctiveness in terms of their risk preferences and whims and fancies. These have been amply observed and empirically established by many studies in last couple of decades.
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