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 …

minimizing, locally risk minimizing, and variance minimizing strategies in tracking stock indices are investigated using both …

I study the effects of risk and ambiguity (Knightian uncertainty) on optimal portfolios and equilibrium asset prices … ambiguity leads to portfolio inertia and excess volatility. Specifically, when news is surprising, then investors may not react … cash flow news, asset betas, or market risk premia may lead to drastic changes in the stock price and hence to excess …

. Depending upon values used for the coefficient of relative risk aversion, the measured urban-rural income gap increases by 20 …