In this paper we investigate how volatility shocks influence investors' perceptions about a stock's risk, its future … development, and investors' investment propensity. We ran artefactual field experiments with two participant pools (finance … professionals and students) that had to take investment decisions, differing in (i) the direction of the shock (down, up, straight …

“investment -game”, namely the zero-sum game with payoff kernel E[{W 1 V t (b)/(W 2 V t (c))}] E[{W1Vt(b)/(W2Vt(c))}] , where W i …

We study the effects of the investment horizon on asset price volatility using a Learning to Forecast experiment. We … end that, for short investment horizons, participants coordinate on self-fulfilling trend extrapolating predictions. Price … investment horizons such bubbles do not emerge and price volatility tends to be lower. This is due to the fact that, for longer …

and regime-dependent preferences. Variations in risk attitudes have fundamental effects on the structure of equilibrium …. Explicit solutions are provided for the market price of risk, the interest rate, stock and bond prices, and asset return … of risk, the interest rate, the stock market volatility, the equity premium and the moments of the consumption growth …

We use the 2008 Mumbai terrorist attacks as a natural experiment to examine how exposure to extreme stress affects …

investment returns and risk, provide an attractive and effective alternative to traditional guaranteed life annuity products …. While longevity risk sharing in pooled annuities has received recent attention, incorporating investment risk beyond fixed …, while reducing pooled annuity income volatility and downside risk, as well as an investment strategy that reduces exposure …