The authors presents an interesting insight into how individual attitudes to risk – risk tolerance – can be evaluated. The authors investigate the emotional side to risk-taking behaviour, focusing on various subjective obstacles that may restrict individuals’ ability to take conscious investment and debt decisions. Using an empirical cross-disciplinary approach, they mix financial competences with others derived from psychology and affective neuroscience. The authors use a variety of tests on a sample of 176 individuals with different levels of financial education/competence including traders, bankers, and bank customers. Overall they find that individuals who have a stronger knowledge of financial products tend to have greater self-evaluated risk tolerance. The measurement of bank risk has become one of the most topical areas of banking research, especially post-crisis.

C.Lucarelli, G.Brighetti (2010). Biased or unbiased risk tolerance in the financial decision making. LONDON : Palgrave Mac Millan.

Biased or unbiased risk tolerance in the financial decision making

BRIGHETTI, GIANNI
2010

Abstract

The authors presents an interesting insight into how individual attitudes to risk – risk tolerance – can be evaluated. The authors investigate the emotional side to risk-taking behaviour, focusing on various subjective obstacles that may restrict individuals’ ability to take conscious investment and debt decisions. Using an empirical cross-disciplinary approach, they mix financial competences with others derived from psychology and affective neuroscience. The authors use a variety of tests on a sample of 176 individuals with different levels of financial education/competence including traders, bankers, and bank customers. Overall they find that individuals who have a stronger knowledge of financial products tend to have greater self-evaluated risk tolerance. The measurement of bank risk has become one of the most topical areas of banking research, especially post-crisis.
2010
New issues in Financial Institutions and Markets
184
199
C.Lucarelli, G.Brighetti (2010). Biased or unbiased risk tolerance in the financial decision making. LONDON : Palgrave Mac Millan.
C.Lucarelli; G.Brighetti
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/114755
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