Risk: Traditional Finance versus Behavioral Finance

摘要: The notion of risk encompasses a wide range meanings across different disciplines, notably the social sciences and business administration fields. Within academic finance, focal point traditional (or standard) finance researchers involves objective nature risk. This viewpoint quantitative measure (e.g., beta, standard deviation) which is based on macro-level assessment incorporating all participants in financial markets. A fundamental assumption linear (positive) relationship between return. In contrast, behavioral academics provide an extensive examination combination both subjective factors. perspective incorporates qualitative aspect influence cognitive issues emotional factors) that highly significant if micro level it acknowledged decision maker essential defining understanding An emerging topic interest exploration by camp has been inverse (negative) perceived expected return (perceived gain). Ultimately, investment situational, multidimensional judgment process dependent specific characteristics product or service. Keywords: risk; uncertainty; objective risk; subjective risk; risk perception; perceived risk; risk-taking behavior; behavioral accounting; traditional finance; standard finance; behavioral finance; experimental economics; psychology; financial psychology; social sciences; modern portfolio theory; standard deviation; variance; semivariance; beta; capital asset pricing model