Don’t fear risk, learn about it: how familiarity reduces perceived risk

Tal Shavit, Eyal Lahav, Mosi Rosenboim

Research output: Contribution to journalArticlepeer-review

Abstract

This article suggests that learning about basic concepts concerning the risk and return of assets will reduce perceived risk. We show experimentally that people who learn about these basic concepts are willing to allocate more money to risky assets and consider the asset’s return relative to its risk.

Original languageEnglish
Pages (from-to)1069-1072
Number of pages4
JournalApplied Economics Letters
Volume23
Issue number15
DOIs
StatePublished - 12 Oct 2016
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2016 Taylor & Francis.

Keywords

  • Risk
  • familiarity
  • financial literacy

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