Title

Illustrating Attitudes Toward Risk

Document Type

Article

Publication Date

2016

Abstract

This classroom exercise is designed to illustrate the concept of risk aversion through a series of four short questionnaires. Students indicate their preferences in a variety of situations constructed to uncover a particular aspect of their tolerance for risk. By comparing students’ choices across varying payoffs, probabilities, bet structures and initial endowments, the exercises contribute to an understanding of the complexity of personal preferences and attitudes toward risk and the impact on financial decision-making.

Language

English

Comments

This article is the authors' final published version in Journal of Risk Education, Volume 7, Issue 1, 2016, Pages 53-61.

The published version is available at http://www.jofriskeducation.org/index.php/jore/issue/view/10. Copyright © East Carolina University

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