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We examine the relation between testosterone, cortisol, and financial decisions in a sample of naïve investors. We find that testosterone level is positively related to excess risk-taking, whereas cortisol level is negatively related to excess risk-taking (correlation coefficient [r]: 0.75 and...
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experiment shows that (hypothetical) burdens discourage beneficial action in general, but even more so for some disadvantaged …
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Financial markets and economic conditions induce stress, but does stress, in turn, have a causal effect on investor … acute stress, which we measure with cortisol levels, heart rates, and self-assessments. We find that stressed investors seek … conformity, which translates into herding and prolonged price bubbles, although bubble magnitude remains unaffected by stress …
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