Science
People avoid loss, regret rather than rely on 'risk-return' financial strategy
Key Points
People make financial choices to avoid losing money or experiencing regret, rather than simply balancing expected monetary returns with their tolerance for financial risk, according to a new study led by Lisa Posey, associate professor of risk management in the Penn State Smeal College of Business.
People make financial choices to avoid losing money or experiencing regret, rather than simply balancing expected monetary returns with their tolerance for financial risk, according to a new study led by Lisa Posey, associate professor of risk management in the Penn State Smeal College of Business.