Individual Risk Perception and Investment Decisions and Actions

Published: May 20, 2021, 2 p.m.

Why does someone accept a risk or not? What rewards make us embrace more risk than we might otherwise be typically comfortable with? And how do we use information to assess those risks? This constant risk-reward calculus – underpinned by what academics call prospect theory – is actually very personal. Yet it actually defines in intriguing ways how most of us navigate many important aspects of our lives. An especially interesting area where the impact of this on each of us is highest is how we make critical economic decisions such as investing, saving, and spending…so stick with us for this episode to find out more and especially how your myQ style may provide insights into your personal investment decisions and actions!