Knowledge Tree
risk perception
Also known as: risk perceptions
Facts (14)
Sources
Biases in Behavioral Finance - World Scholars Review worldscholarsreview.org Sep 15, 2024 7 facts
claimBiais and Weber (2009) found that hindsight bias is positively correlated with risk perception and investment performance.
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.
referenceSukamulja, S. & Senoputri, A. (2017) published 'Regret Aversion Bias, Mental Accounting, Overconfidence, and Risk Perception in Investment Decision Making on Generation Y Workers in Yogyakarta' in the SSRG International Journal of Economics and Management Studies.
referenceThe paper 'Framing Effects and Risk Perception: The Effect of Prior Performance Presentation Format on Investment Fund Choice', published in the Journal of Economic Psychology (2007), examines how the presentation format of prior performance data influences investment fund selection.
claimSukamulja and Senoputri (2017) found that only overconfidence and risk perception significantly influence investment decision-making among Generation Y workers in Yogyakarta, while mental accounting did not have a significant influence.
Understanding Behavioral Aspects of Financial Planning and Investing financialplanningassociation.org Mar 1, 2015 4 facts
procedureAn effective long-term investment strategy involves identifying a client's level of risk tolerance and risk perception, determining an appropriate asset allocation strategy, and rebalancing the client's portfolio on a yearly basis.
measurementIn a 1999 survey of 265 financial advisers, MacGregor, Slovic, Berry, and Evensky reported that 98 percent of an expert’s risk perception is attributable to three major factors: worry, volatility, and knowledge.
claimRisk perception incorporates various objective and subjective factors that influence how individuals make judgments about financial products and investment services.
referenceVictor Ricciardi and Douglas Rice authored the chapter 'Risk Perception and Risk Tolerance' in the 2014 book 'Investor Behavior—The Psychology of Financial Planning and Investment,' edited by H. Kent Baker and Victor Ricciardi.
Practitioners' perceived risks to biodiversity from renewable energy ... nature.com Feb 27, 2025 2 facts
claimWater management practitioners frame solutions differently based on their professional experience and risk perception, and uncertainties regarding complex or risky issues can influence this framing to facilitate the speed and success of decision-making.
referenceDobbie MF and Brown RR (2014) published 'A Framework for Understanding Risk Perception, Explored from the Perspective of the Water Practitioner' in Risk Analysis (34:294–308).
The Influence of Behavioral Biases on Investment Decisions jmsr-online.com Jul 8, 2025 1 fact
claimIn social investing environments such as Reddit threads, Telegram groups, or influencer-led YouTube channels, the selective disclosure of investment performance, signal distortion, or emotional framing may lead to herding behavior and distorted risk perceptions among investors.