This paper focuses on risk tolerance which clearly influences financial decision making. We explore the emotional side … of a risk taking behaviour, comparing alternative measures of financial risk tolerance resulting from the consilience of … unbiased risk tolerance (UR), which is obtained from the psycho physiological reactions of individuals taking risk in …

risk perceptions, Kunz et al. (2017) found that when safe assets are included with risky assets to provide the underlying … assets of a BRC, investors erroneously perceive a lower risk for the BRC when in fact it becomes higher. We confirm the same …

's composite preferences for risk tolerance, ambiguity aversion and optimism. Investors rationalize (IR)rational expected utilities …

We design and conduct an economic experiment to investigate the learning process of agents under compound risk and … significantly overweight the new signal, while when learning under compound risk, subjects are essentially Bayesian …

-country tests of risk substitution theory that encompasses and criticises all of them …In this paper, we extend the static portfolio choice problem with a small background risk to the case of small … partially correlated background risks. We show that respecting the theories under which risk substitution appears, except for …

uncertainty aversion parameter, which measures the investor's preference for robustness using econometric theory. I derive a …

of risk assessment from the viewpoint of risk theory, focusing on moment-based, distortion and spectral risk measures. We …This paper deals with risk measurement and portfolio optimization under risk constraints. Firstly we give an overview …-Gaussian features. We deal with the problem of portfolio optimization under risk constraints and lead a comparative analysis of …

This paper studies the aggregation of a downside risk measure introduced by Fishburn (1977). Properties of aggregated … downside risk are examined and compared to classical risk measures such as standard deviation and value-at-risk. The notion of … downside-efficient portfolios that maximize the expected payoff given a prescribed upper bound for downside risk is introduced …

We describe a simple robust technique for incorporating any type of views on expected returns into the Risk parity … remain at risk parity. Second, agnostic (cautious) views always result in a more diversified allocation. We further extend … this framework to arbitrary initial risk budgets, and suggest an alternative to the Black-Litterman methodology …