Bernstein challenges the assumption of “the rational man.” What are his views on the economic rational man?

1. Bernstein takes the reader through the evolution of the concept of risk from ancient Greeks to modern day finance. According to Bernstein what are some of the milestones that shaped the evolution of the notion of risk?
2. Bernstein identifies the key components of risk as probability, severity and weight. What are his definitions and interpretations of these concepts?
3. Bernstein challenges the assumption of “the rational man.” What are his views on the economic rational man?
4. What are Bernstein’s views on behavioral finance, especially Kahneman and Tversky. Please choose two of the biases he identifies and explain them with examples.
5. What are the implications of Bernstein’s stories on risk for financial markets?