Determinants of Risk Taking Behavior : The role of Risk Attitudes , Risk Perceptions and Beliefs

@inproceedings{Nosic2007DeterminantsOR,
  title={Determinants of Risk Taking Behavior : The role of Risk Attitudes , Risk Perceptions and Beliefs},
  author={Alen Nosic and Martin Weber},
  year={2007}
}
Our study analyzes the determinants of investors’ risk taking behavior. We find that investors’ risk taking behavior such as portfolio choices can be predicted using risk attitudes, risk perceptions and belief measures such as optimism and overconfidence. However, the predictive power of these determinants heavily depends on the domain in which they were elicited. More specifically, risk attitudes, risk perceptions and beliefs only allow us to predict investors’ risk taking behavior if they are… CONTINUE READING

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