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Full-Text Articles in Finance
Examining The Low Volatility Anomaly In Stock Prices, Munish Malhotra
Examining The Low Volatility Anomaly In Stock Prices, Munish Malhotra
Electronic Theses and Dissertations
Modern portfolio theory states that investments with greater beta, a common measure of risk, require greater returns from investors in order to compensate them for taking greater risk. Therefore, under the premise that market participants act rationally and therefore markets run efficiently, investments with higher beta should generate higher returns vis-à-vis investments with lower beta over the long run. In fact, many studies suggest that investments with lower beta actually generate equal to or higher returns relative to investments with higher beta. In looking at data for the S&P 500 going back 22 years between 1990 and 2012, this study …
The Development Of The Risky Financial Behavior Scale: A Measure Of Financial Risk Tolerance, Yilong Zheng
The Development Of The Risky Financial Behavior Scale: A Measure Of Financial Risk Tolerance, Yilong Zheng
Electronic Theses and Dissertations
There is an increasing need for a more comprehensive instrument to measure risk tolerance in human financial decision making studies. The traditional economic method and the more recent psychometric method of examining risk tolerance were both reviewed in the study. The purpose of this thesis was the initial development and validation of the Risky Financial Behavior Scale (RFBS), with items taken from four different domains noted in previous studies. Phase I and II consisted of item pool generation, construct determination from content experts' review and cognitive interviews. Data from these stages were collected and used for item revision prior to …