Prospect theory as an explanation of risky choice by professional investors: Some evidence

Robert A. Olsen

Review of Financial Economics, 1997, vol. 6, issue 2, 225-232

Abstract: This paper examines the results of surveys of professional investment managers' risk perceptions and investment preferences. Managers are found to exhibit loss aversion, to be risk averse for gains and risk loving for loss; and to believe in time diversification. The results are consistent with the implications of the S‐shaped value function of Prospect Theory.

Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1016/S1058-3300(97)90008-2

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wly:revfec:v:6:y:1997:i:2:p:225-232

Access Statistics for this article

More articles in Review of Financial Economics from John Wiley & Sons
Bibliographic data for series maintained by Wiley Content Delivery ().