The low level of financial literacy across households suggests that they are at risk of making suboptimal financial …

self-directed online investors at a UK bank. The survey asks for return expectations, risk expectations, and risk tolerance …. The exception is a positive effect of increases in return expectation on buying activity. Portfolio risk levels and … changes are more systematically related to return and risk expectations. In line with financial theory, risk taking increases …

between risk and uncertainty is implemented by applying the multiple priors framework to beliefs about the probability of …

display varying levels of efficiency over time but also depending on size and on investment style. Robustness analysis … respect to risk and operational characteristics such as flows, assets, and Morningstar star ratings. Panel-VAR estimations … reveal that the response of funds’ efficiency to a shock in risk is positive and substantial. Some evidence of reverse …

An empirical issue is whether a mutual fund’s change in intertemporal risk is intentional or arises from risk mean … reversion. Our methodology uses actual fund trades to identify funds that actively change risk. Funds that are statistically … identified as trading to change return variance or tracking error variance do not exhibit risk mean reversion. Mostly, funds …

effect,” the innate behavior of optimists, and the risk of litigation/prosecution for over-reporting earnings. …

under risk and uncertainty. Sophisticated methods have been developed to reliably elicit CPT parameters on an individual …, particularly in the context of investment counseling for retail investors. Specifically, we examine whether CPT parameters elicited …