Do entrepreneurs consider the risk of their business equity when making investment portfolio allocations? Many people … compartmentalize different risks and consider them separately, called mental accounting. Alternatively, the risk substitution … hypothesis suggests that entrepreneurs would offset high business income risk by selecting a more conservative investment …

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 …

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 …