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Relations (1)
related 2.00 — strongly supporting 3 facts
Loss aversion and risk perception are related as both are key psychological factors influencing investment decision-making, with risk perception often serving as a moderator for the effects of loss aversion [1]. Research indicates that both concepts are studied together to determine their impact on individual investor behavior and trading frequency {fact:1, fact:3}.
Facts (3)
Sources
Biases in Behavioral Finance - World Scholars Review worldscholarsreview.org 3 facts
referenceShah, I., and Malik, I. R. published 'Role of Regret Aversion and Loss Aversion Emotional Biases in Determining Individual Investors’ Trading Frequency: Moderating Effects of Risk Perception' in Humanities & Social Sciences Reviews in 2021.
referenceKhan (2017) authored 'Impact of Availability Bias and Loss Aversion Bias on Investment Decision Making, Moderating Role of Risk Perception', which explores how availability bias and loss aversion affect investment decisions, with risk perception acting as a moderator.
claimShah and Malik (2021) discovered that regret aversion and loss aversion have statistically significant negative impacts on individual investors' trading frequency, while risk perception has an insignificant but positive impact.