Posts tagged with: Risk taking
A note on trader Sharpe ratios. (2009)
"Financial traders are assessed by how much money they make per unit of risk taken, known as the Sharpe Ratio.. a population of experienced traders attain Sharpe Ratios significantly higher than the...
Endogenous steroids and financial risk taking on a London trading floor. (2008)
"..a trader’s morning testosterone level predicts his day’s profitability. We also found that a trader’s cortisol rises with both the variance of his trading results and the volatility of the...
Managerial overconfidence and corporate policies. (2007)
"...companies with overconfident CFOs use lower discount rates to value cash flows, and that they invest more, use more debt, are less likely to pay dividends, are more likely to...
Power, optimism and risk-taking. (2006)
"..investigated the hypotheses that the sense of power increases optimism in perceiving risks and leads to more risky behaviour. ...individuals with a higher generalized sense of power were more optimistic...
CEO overconfidence and corporate investment. (2005)
"..studied how hubris affects CEOs' corporate investment decisions ... CEOs tend to think that under their glorious leadership the stock prices will keep going up, so they keep holding on to...
Unbounded irrationality: Risk and organizational narcissism at Long Term Capital Management. (2003)
“..focuses on the near collapse of the highly prestigious hedge-fund Long Term Capital Management (LTCM) in September 1998, causing widespread fears (of a) global financial meltdown. Prof Mark Stein,...