, financial institutions are in search of ways to incorporate clients’ loss aversion in their risk classifications. The most … critical obstacle appears to be the lack of a valid measurement method for loss aversion that can be straightforwardly … risk-profiling application of an established financial institution. In total, we elicit loss aversion for 1,040 employees …

indicate that it could be possible for a capital income tax increase not to stimulate risk taking even if the tax code provides … the attractive full loss offset provisions. However, risk taking can be stimulated if the investor interprets part of the … tax as a loss instead as a reduced gain. Then investor becomes risk seeking and moves away from the discomfort zone of …

an increase in ambiguity is associated with increased investor activity. It also leads to a reduction in risk …

We infer which risk model investors use by looking at their capital allocation decisions. We find that investors adjust … for risk using the beta of the Capital Asset Pricing Model (CAPM). Extensions to the CAPM perform poorly, implying that … they do not help explain how investors measure risk …