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Re: Investor Participation and perception about risk premium

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  • pgreenfinch
    Hi, Shalu Maybe you will find what you are looking for in: http://equity-premium.behaviouralfinance.net/ Peter ... participation in stock market is dependent
    Message 1 of 4 , Dec 2, 2006
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      Hi, Shalu
      Maybe you will find what you are looking for in:
      http://equity-premium.behaviouralfinance.net/
      Peter

      --- In Behavioral-Finance@yahoogroups.com, "Shalu Kalra"
      <shalukalra@...> wrote:
      >
      > Hi,
      >
      > Does any one knows about any paper that talks about that investor
      participation in stock market is dependent on their perception about
      risk premium.
      >
      > It will be really helpful.
      >
      >
      > Thanks,
      >
      > Shalu
      >
      > -----Original Message-----
      > From: Behavioral-Finance@yahoogroups.com [mailto:Behavioral-
      Finance@yahoogroups.com]On Behalf Of pgreenfinch
      > Sent: Wednesday, November 22, 2006 11:49 PM
      > To: Behavioral-Finance@yahoogroups.com
      > Subject: [Behavioral-Finance] Article of the month: Dare to be dull
      >
      >
      >
      > This month, the article we will focus on doesn't come
      > from the glossary, but is a Thanksgiving present from
      > Colorado Springs by our member Allan Roth the founder
      > of Wealth Logic. He wrote for us a contribution titled
      > with his motto "Dare to be dull".
      >
      > In that article, Allan talks about the "Las Vegas effect"
      > due to mental accounting. He demonstrates mathematically,
      > to the typical investor who saves his hard-earned money
      > aiming at future financial independance, the danger of
      > adjusting one's portfolio continuously. Human instinct
      > would entice investors to do such active reshuffling,
      > but Allan tells them to resist that emotional temptation
      > to overtrade. If I might sum it up in my own words, his
      > advice is: "better be dull than sorry".
      >
      > As there are good illustrations in his article I will not
      > reproduce the text here, it is better that you click
      > directly at Allan's contribution at :
      > http://perso. <http://perso.orange.fr/pgreenfinch/daredull/dare%
      20to%20be%20dull.htm> orange.fr/pgreenfinch/daredull/dare%20to%20be%
      20dull.htm
      >
      > Thannking Allan for his contribution, which I'm sure will
      > bring fruitful discussions in our group.
      >
      > Peter
      >
    • pgreenfinch
      Also, Shalu, for other approaches than the one I mentionned below on equity premium / risk premium , maybe you should try to look also at risk perception ,
      Message 2 of 4 , Dec 3, 2006
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        Also, Shalu, for other approaches than the one I mentionned
        below on "equity premium / risk premium", maybe you should
        try to look also at "risk perception", "base rate fallacy",
        "myopic loss aversion".

        Behavioral finance is quite generous about semantics. It is
        a sure way to riches... at least to a rich vocabulary ;-))

        Peter

        --- In Behavioral-Finance@yahoogroups.com, "pgreenfinch"
        <pgreenfinch@...> wrote:
        >
        > Hi, Shalu
        > Maybe you will find what you are looking for in:
        > http://equity-premium.behaviouralfinance.net/
        > Peter
        >
        > --- In Behavioral-Finance@yahoogroups.com, "Shalu Kalra"
        > <shalukalra@> wrote:
        > >
        > > Hi,
        > >
        > > Does any one knows about any paper that talks about that
        investor
        > participation in stock market is dependent on their perception
        about
        > risk premium.
        > >
        > > It will be really helpful.
        > >
        > >
        > > Thanks,
        > >
        > > Shalu
        > >
        > > -----Original Message-----
        > > From: Behavioral-Finance@yahoogroups.com [mailto:Behavioral-
        > Finance@yahoogroups.com]On Behalf Of pgreenfinch
        > > Sent: Wednesday, November 22, 2006 11:49 PM
        > > To: Behavioral-Finance@yahoogroups.com
        > > Subject: [Behavioral-Finance] Article of the month: Dare to be
        dull
        > >
        > >
        > >
        > > This month, the article we will focus on doesn't come
        > > from the glossary, but is a Thanksgiving present from
        > > Colorado Springs by our member Allan Roth the founder
        > > of Wealth Logic. He wrote for us a contribution titled
        > > with his motto "Dare to be dull".
        > >
        > > In that article, Allan talks about the "Las Vegas effect"
        > > due to mental accounting. He demonstrates mathematically,
        > > to the typical investor who saves his hard-earned money
        > > aiming at future financial independance, the danger of
        > > adjusting one's portfolio continuously. Human instinct
        > > would entice investors to do such active reshuffling,
        > > but Allan tells them to resist that emotional temptation
        > > to overtrade. If I might sum it up in my own words, his
        > > advice is: "better be dull than sorry".
        > >
        > > As there are good illustrations in his article I will not
        > > reproduce the text here, it is better that you click
        > > directly at Allan's contribution at :
        > > http://perso. <http://perso.orange.fr/pgreenfinch/daredull/dare%
        > 20to%20be%20dull.htm> orange.fr/pgreenfinch/daredull/dare%20to%
        20be%
        > 20dull.htm
        > >
        > > Thannking Allan for his contribution, which I'm sure will
        > > bring fruitful discussions in our group.
        > >
        > > Peter
        > >
        >
      • Shalu Kalra
        HI Peter, Thanks. I hope that new words can sure help me. Shalu ... From: Behavioral-Finance@yahoogroups.com [mailto:Behavioral-Finance@yahoogroups.com]On
        Message 3 of 4 , Dec 3, 2006
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          HI Peter,
           
          Thanks. I hope that new words can sure help me.
           
           
          Shalu
          -----Original Message-----
          From: Behavioral-Finance@yahoogroups.com [mailto:Behavioral-Finance@yahoogroups.com]On Behalf Of pgreenfinch
          Sent: Sunday, December 03, 2006 2:39 PM
          To: Behavioral-Finance@yahoogroups.com
          Subject: [Behavioral-Finance] Re: Investor Participation and perception about risk premium

          Also, Shalu, for other approaches than the one I mentionned
          below on "equity premium / risk premium", maybe you should
          try to look also at "risk perception", "base rate fallacy",
          "myopic loss aversion".

          Behavioral finance is quite generous about semantics. It is
          a sure way to riches... at least to a rich vocabulary ;-))

          Peter

          --- In Behavioral-Finance@ yahoogroups. com, "pgreenfinch"
          <pgreenfinch@ ...> wrote:
          >
          > Hi, Shalu
          > Maybe you will find what you are looking for in:
          > http://equity- premium.behaviou ralfinance. net/
          > Peter
          >
          > --- In Behavioral-Finance@ yahoogroups. com, "Shalu Kalra"
          > <shalukalra@ > wrote:
          > >
          > > Hi,
          > >
          > > Does any one knows about any paper that talks about that
          investor
          > participation in stock market is dependent on their perception
          about
          > risk premium.
          > >
          > > It will be really helpful.
          > >
          > >
          > > Thanks,
          > >
          > > Shalu
          > >
          > > -----Original Message-----
          > > From: Behavioral-Finance@ yahoogroups. com [mailto:Behavioral-
          > Finance@yahoogroups .com]On Behalf Of pgreenfinch
          > > Sent: Wednesday, November 22, 2006 11:49 PM
          > > To: Behavioral-Finance@ yahoogroups. com
          > > Subject: [Behavioral- Finance] Article of the month: Dare to be
          dull
          > >
          > >
          > >
          > > This month, the article we will focus on doesn't come
          > > from the glossary, but is a Thanksgiving present from
          > > Colorado Springs by our member Allan Roth the founder
          > > of Wealth Logic. He wrote for us a contribution titled
          > > with his motto "Dare to be dull".
          > >
          > > In that article, Allan talks about the "Las Vegas effect"
          > > due to mental accounting. He demonstrates mathematically,
          > > to the typical investor who saves his hard-earned money
          > > aiming at future financial independance, the danger of
          > > adjusting one's portfolio continuously. Human instinct
          > > would entice investors to do such active reshuffling,
          > > but Allan tells them to resist that emotional temptation
          > > to overtrade. If I might sum it up in my own words, his
          > > advice is: "better be dull than sorry".
          > >
          > > As there are good illustrations in his article I will not
          > > reproduce the text here, it is better that you click
          > > directly at Allan's contribution at :
          > > http://perso. <http://perso. orange.fr/ pgreenfinch/ daredull/ dare%
          > 20to%20be%20dull. htm> orange.fr/pgreenfin ch/daredull/ dare%20to%
          20be%
          > 20dull.htm
          > >
          > > Thannking Allan for his contribution, which I'm sure will
          > > bring fruitful discussions in our group.
          > >
          > > Peter
          > >
          >

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