In this paper, we have discussed how to use the variable weight synthesizing to explain the value function in prospect theory. After that we have discussed several kinds of value function in the money market and have done some demonstration. Also in this paper, we will introduce the Markowitz investment theory and we will discuss some drawbacks of Markowitz theory.And then we will try to demonstrate that the character of Chinese stock market is accorded with the prospect theory.In the end we will introduce some investment models and will give some drawbacks of those models, and finally we have shown some methods of using the variable weight synthesizing to amend those investment models. |