Is Trader Risk Aversion Curable?

Risk aversion is as prevalent as it is expensive. For financial traders this is especially true. This paper proposes a solution for alleviating the behavior using a model implied from experiments on myopic loss aversion and tests the model on retail currency traders from a large online database. “Risk Delegation,” hiding stakes information from traders and adjusting those stakes on a risk-neutral basis via a third party, is put forward as a technically feasible method for traders to overcome risk aversion and achieve returns commensurate with risk neutrality

Year of publication:	2014
Authors:	Larson, Francis
Publisher:	[2014]: [S.l.] : SSRN
Subject:	Risikoaversion \| Risk aversion \| Anlageverhalten \| Behavioural finance \| Theorie \| Theory

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