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Before information φ arrives, market observers must be uncertain whether the stock price conditioned on φ will be higher or lower than the current price. Otherwise there is an obvious arbitrage opportunity. By assuming this minimal condition of efficient markets, it is shown under the...
Persistent link: https://www.econbiz.de/10013035935
Risk-assessment and risk-taking in various forms are among the most important tasks financial professionals face in … domain) on risk-taking, predominantly among students. In a series of experiments set in different contextual frameworks, we … effect in risk-taking than the general population. Interestingly, for domain-specific risk-taking in a finance context, we …
Persistent link: https://www.econbiz.de/10012140888
differently than individuals as they rely significantly less on useless outside advice from "experts" and choose the risk … the risk-free investment more often and are slightly more prone to the hot hand belief than groups of two male subjects. …
Persistent link: https://www.econbiz.de/10010312231
Risk-assessment and risk-taking in various forms are among the most important tasks financial professionals face in … domain) on risk-taking, predominantly among students. In a series of experiments set in different contextual frameworks, we … effect in risk-taking than the general population. Interestingly, for domain-specific risk-taking in a finance context, we …
Persistent link: https://www.econbiz.de/10012019643
differently than individuals as they rely significantly less on useless outside advice from “experts” and choose the risk … the risk-free investment more often and are slightly more prone to the hot hand belief than groups of two male subjects. …
Persistent link: https://www.econbiz.de/10010889828
Investor behavior was shown to be considerably different when the risk-return tradeoff is presented by experience … investors are faced with multiple decisions over time and are consequently able to adjust the risk level they initially chose … new form of risk simulation in which wealth paths over time are presented rather than just final outcomes. After investors …
Persistent link: https://www.econbiz.de/10011870656
mutual funds they manage. First, we find that fund managers' risk tolerance positively correlates with fund risk when … accounting for fund benchmark, fund category, and other controls. Second, we show that fund managers' ambiguity tolerance … abilities generate these returns at lower risk. …
Persistent link: https://www.econbiz.de/10012140892
We investigate how the experience of extreme events, such as the COVID-19 market crash, influence risk-taking behavior …. To isolate changes in risk taking from other factors, we ran controlled experiments with finance professionals in … risky during the crash than before. This lower perceived risk is likely due to adaptive normalization as the volatility …
Persistent link: https://www.econbiz.de/10012609020
We investigate how volatility shocks affect investors' risk-taking, risk perception and forecasts. We run artefactual … investments are negatively associated with the price change and performance of the stock and their perceived risk increases to a … similar extent following shocks of all directions. Students' risk perception, in contrast, is more closely related to the …
Persistent link: https://www.econbiz.de/10012609049
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 …
Persistent link: https://www.econbiz.de/10012482834