Decision making under risk: prospect theory approach and cognitive reflection test

Behavioral finance aims to understand the reasoning patterns of investors, constrained by emotional processes, and how they influence decision-making. This motivated work, whose purpose is evaluate individuals' decision-making behavior under risk/uncertainty. The methodological procedure adopted exploratory research through a questionnaire grounded prospect theory cognitive reflection test with 329 responses from individuals in Portugal. results are aligned Kahneman Tversky's study. Moreover, support different behaviors between non-investors consistency non-familiar familiar behavioral finance. Although ratio correct answers low, it higher group investors male gender. combination identified groups high low aptitude effects theory. Overall, seems be influenced biases intuitive system. findings important because highlight importance strategic financial literacy plans