Measuring Perceived Risk Based on Investor Psychology
Xu Zhang · Journal of Qingdao University · 2008
This paper is concerned with the measurement of investment risk based on investor psychology(overconfidence and Biased self-attribution).We present perceived variance and perceived LPM methods to measure the perceived risk,and analyze the relation between perceived variance and traditional variance,discuss the relation between perceived LPM and traditional LPM.Comparing with the traditional risk measurements,the perceived risk measurements are more close to investment reality.