of a global currency that is influenced by interest rate spreads and global risk factors. The paper also looks at the …

commensurate with their risk aversion; more risk-averse individuals pick lower-volatility stocks. The investors' portfolio …The preferred risk habitat hypothesis, introduced here, is that individual investors select stocks with volatilities … consistent with the predictions of the hypothesis: the portfolios contain highly similar stocks in terms of volatility, when …

This article analyzes the conditions under which any change in a multiplicative background risk induces a more cautious … behavior. We give necessary and sufficient conditions under which any change in the multiplicative background risk with respect … to the Nth-degree stochastic dominance raises local risk aversion. Surprisingly, decreasing relative risk aversion of any …

individual risk aversion changes over time with the background economic conditions. Considering six different measures of self …-assessed risk aversion, which cover different aspects of risk, our preliminary results show that risk aversion is not stable over … higher risk aversion at the end of the 90s; those who invested, in contrast, showed a steadily constant or decreasing pattern …

This note gives sufficient conditions of cross risk vulnerability introduced by Malevergne and Rey (2005), which is the … equivalent condition to guarantee that an unfair non-monetary background risk makes decision makers more risk averse. The …

We use household survey data to construct a direct measure of absolute risk aversion based on the maximum price a … measures of background risk and liquidity constraints. We find that risk aversion is a decreasing function of endowment - thus … find that households' attributes are of little help in predicting their degree of risk aversion, which is characterized by …