This experimental paper investigates the impact of emotions on risk and return estimates of stocks. Participants rate … well-known blue-chip firms on an emotional scale and forecast risk and return of the firms' stock. We find that positive … emotions lead to a prediction of high return and low risk, while negative emotions lead to a prediction of low return and high …

opportunities while also introducing new risks. The aim of this study is to investigate the relationship between risk and return in … any dynamic link between risk and return in the Indian fintech market. The variance-based Mean-GARCH (GARCH-M) model was … used to determine whether there is a dynamic link between risk and return in the Indian fintech market. The findings …

Risk premium plays an important role in stock investing. Experiments have shown that value stocks typically have a … crises. This study aimed to build the uncertainty index and control it in the regression analysis model to solve the … stocks have a higher average return than growth stocks due to the higher overall risk. Furthermore, this study combined the …

Background: In making investment decisions, asset risk and return are two crucial criteria on which investors base … their decision. Objectives: This paper provides risk and return analysis and compares different traditional and alternative … investments with special emphasis on the COVID-19 crisis. Assets included in the analysis are stocks, bonds, commodities, real …

investments, we document an outperformance of 100 to 200 bps per year, even after we account for the leverage costs of 100 bps. We … believe our work will open up a new risk investing paradigm for those seeking long-term advantages. …

Stocks with high uncertainty about risk, as measured by the volatility of volatility (vol-of-vol), robustly … underperform stocks with low uncertainty about risk by 10 percent per year. This vol-of-vol effect is distinct from (combinations … that uncertainty about risk is highly relevant for stock prices …

This paper studies the relation between the uncertainty of volatility, measured as the volatility of volatility, and … future delta-hedged equity option returns. We find that delta-hedged option returns consistently decrease in uncertainty of … liquidity, volatility characteristics, and jump risks, and are not explained by common risk factors. Our findings suggest that …

forecasting accuracy significantly. Higher uncertainty is found to increase the leverage and macro effects from credit and … commodity markets on stock market realized volatility. Specifically, Economic Policy Uncertainty is shown to be one of the main …

on the state of the economy. I show that a conditional model with investors' beliefs and an uncertainty risk factor is …This paper investigates empirically the dynamics of investors' beliefs and Bayesian uncertainty about the state of the … economy as state variables that describe the time-variation in investment opportunities. Using measures of uncertainty …