Prospect Theory (PT) and Constant-Relative-Risk-Aversion (CRRA) preferences have clear-cut and very different implications for the optimal asset allocation between a riskless asset and a risky stock as a function of the investment horizon. While CRRA implies that the optimal allocation is independent of the horizon. we show that PT implies a dramatic and discontinuous "jump" in the op... https://darthomes.shop/product-category/posters/