This article compares the investment simulations of the Brazilian MBA students and physicians. The study indicates that the process of making investment decisions is based on the `Behavioral Economics' theory which uses the fundamental aspects of the `Prospect Theory' developed by Kahneman and Tversky (1979). The following effects have been tested and identified using an investment simulator over the Internet: (1) the endowment effect, which prevents the participants from selling the received assets, even if better investment options are available; (2) the disposition effect, which refers to the pattern that people avoid realizing paper losses and seek to realize gains; (3) fear of regret, which makes the participant invest in previously rejected assets that had good valorization; and (4) framing, which modifies the investment decision depending on the perspective given to the problem. The conclusions of this study are: (1) the endowment effect was effective for physicians; (2) the disposition effect did not affect the participants; (3) the fear of regret influenced the decisions of MBA students; and (4) the framing modified the investment decision of the physicians and MBA students.

The Modern Finance Theory has made available many tools to investors that either maximize returns for an acceptable level of risk or minimize risk without sacrificing returns. Further, the financial market has made possible many operations that maximize returns and minimize risks.

The international market participants work with powerful risk management mechanisms, thereby mitigating the possibility of global crisis that erodes savings and investments.

The evolution mechanisms of the risk control are an important factor in the construction of more stable markets. More efficient risk controls help investors go in search of higher returns and longer term investments.

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