We present an experiment that investigates the effect of the fee structure and past returns on mutual fund choice. We … future returns are independent of past returns, these past returns are an important determinant of subjects' investment …

challenging. Here, we consider investment opportunities that change randomly, while payoffs are observable only when invested. In …

This experimental study investigates the impact of affective attitudes on risk and return estimates of stocks …. Participants rate well-known blue-chip firms on an affective scale and forecast risk and return of the firms' stock. We find that … positive affective attitudes lead to a prediction of high return and low risk, while negative attitudes lead to a prediction of …

This paper studies the effect of new fund flows on investment behavior and the resulting equilibrium price of risk. The … equilibrium. New flow of funds to the asset management industry lead to inefficient investment decisions, mispricing of risk, and … Small Fund Industry model shows equilibria with overinvestment in unprofitable and underinvestment in profitable investment …

different risk characteristics for which they have to state their perceived risk and make investment decisions. Our results hint … at the probability of losing being the main driver of risk perception and investment propensity. Volatility plays a less …Most textbook finance literature assumes risk to be the standard deviation of returns (volatility), which is not only …

expectations and risk perceptions) and preferences (risk tolerance) as a result of their personal return and risk experiences. Past … returns positively impact return expectations and risk tolerance, and negatively impact risk perceptions. Realized risk …, however, has no effect. That is, even in a highly volatile stock-market period in which risk appears very salient, investors …

managers to achieve better returns, but they could also result in excessive risk taking. While we find evidence that these …