In this paper we investigate how volatility shocks influence investors' perceptions about a stock's risk, its future … shocks to increase risk similarly, while students do not perceive upwardlytrending shocks to increase the riskiness of the …

the standard approach, the target firm's expected return and risk are modeled as a parametric curve in terms of a critical … business decision. A general condition is derived for characterizing how a risk-averse or risk-seeking agent may behave … differently from a risk-neutral decision maker. This general theorem is applied to solve several examples that demonstrate the …

high-risk investments. We build on these studies via an incentivized experiment, in which we examine how manipulated levels … high-risk gamblers. In comparison, highest-risk gamblers traded more frequently regardless of volatility levels. Many … perceived as low-risk, and less likely to be the target of gambling interventions …

This paper sets up an experimental asset market in the laboratory to investigate the effects of ambiguity on price … formation and trading behavior in financial markets. The obtained trading data is used to analyze the effect of ambiguity on … trading) and to test the quality of popular empirical market-based measures for the degree of ambiguity. We find that …

the classical MV portfolio theory and the CAPM, is consistent with expected utility maximization for all risk …

We consider dynamic sublinear expectations (i.e., time-consistent coherent risk measures) whose scenario sets consist …