Research Paper
Year: 2022 | Month: October | Volume: 9 | Issue: 10 | Pages: 476-481
DOI: https://doi.org/10.52403/ijrr.20221054
Asymmetric Volatility Bias and Loss Aversion in Investment Decision-Making
Massimiliano di Toro
Ph.D. Swiss Management Center
ABSTRACT
The goal of the research is to investigate if the investor considers the volatility as asymmetric. The researcher as called this behaviour asymmetric volatility bias, because in the mind of the investor the volatility is associated only to the risk, without consider the potential benefit of the volatility during an upward trending market. The research aims to investigate if the asymmetric volatility bias is a confirmation of the existence of the loss aversion bias.
Keywords: Asymmetric volatility bias, volatility, loss aversion, prospect theory.
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