The paper investigates the equity premium puzzle on Warsaw Stock Exchange (WSE). The
dataset we use is based on a detailed survey conducted among Polish individual investors,
which enabled us to develop an investor's profile. We find evidence that certain behavioral
biases are present on the market. We later compare the results with the risk premium on the
WSE to verify whether the premium that exists on the market can be explained using
behavioral factors. The study provides empirical solution to the equity premium puzzle …