The preferred risk habitat hypothesis, introduced here, is that individual investors select stocks with volatilities … commensurate with their risk aversion; more risk-averse individuals pick lower-volatility stocks. The investors' portfolio … stocks are sold they are replaced by stocks of similar volatilities, and the more risk averse customers indeed hold less …

-affiliated foreign ownership before the crisis predicts higher stock liquidity, lower extreme negative return realizations, lower short …

We study the properties of foreign exchange risk premiums that can explain the forward bias puzzle, defined as the … tendency of high-interest rate currencies to appreciate rather than depreciate. These risk premiums arise endogenously from the …-currency) term structure models reveals a noticeable tradeoff between matching depreciation rates and accuracy in pricing bonds. Risk …

the fraction of household ownership decreases with measures of the tax benefits of holding stocks inside a pension plan …

for the pricing of risk includes homeownership rates) and in spatial economics (e.g. hedging considerations and the … pricing of risk affect the geographic allocation of human capital). …