households reduce their financial risk exposure when confronted with background risk. Our novel modelling approach - termed a … risk, and is unique in recovering for, any given risky asset class, the shares that are reallocated to a safer asset … category. Background risk exerts a significant impact on household portfolios, resulting in a 'flight from risk', away from …

take risk as measured by the general risk question. We demonstrate that this disposition, which we call risk conception, is … strongly associated with optimism, a stable facet of personality and that it predicts real-life risk taking. The general risk … question captures this disposition alongside pure risk preference. This enlightens why the general risk question is a better …

excessive financial risk. Recent theory concludes that 10-15% of a worker's wealth portfolio can be prudently invested in … financial risk. We also find that families with employer stock are found to express more tolerance of financial risk, have … financial risk does not appear to represent a substantial problem in practice for most employee share owners, a small minority …

increases in risk taking. Where we can separately identify changes in risk-independent performance and risk taking, our … increases in risk taking. These effects are concentrated among those closest to the margin of elimination and among lower …

although risk can be measured, uncertainty cannot be measured. Even though risk can be measured, a simple symmetric measure … attempt at "measuring" risk or (fundamental) uncertainty is flawed. …

stronger distaste for low relative wealth translates into reduced relative risk aversion and, consequently, into riskier … prone to divorce exhibit risk-taking behavior that is more similar to that of single men than married men in environments …

We present first evidence how individual risk preferences shape entrepreneurial investment among the very wealthy using … standard measure of risk tolerance. We find that wealthy individuals are more likely to be entrepreneurs and invest a larger … ways strongly determined by individual risk tolerance. Since the wealthy dominate aggregate risky investment, their risk …