The Psychology of Risk: The BehavioralFinancePerspective
The Psychology of Risk: The BehavioralFinancePerspective ArXiv ID: ssrn-1155822 “View on arXiv” Authors: Unknown Abstract Since the mid-1970s, hundreds of academic studies have been conducted in risk perception-oriented research within the social sciences (e.g., nonfinancial areas) Keywords: Risk Perception, Social Sciences, Behavioral Economics, Heuristics, Multi-Asset Complexity vs Empirical Score Math Complexity: 1.0/10 Empirical Rigor: 0.5/10 Quadrant: Philosophers Why: The paper is a theoretical literature review that synthesizes existing behavioral finance concepts without introducing new mathematical models or conducting empirical backtests. flowchart TD A["Research Question<br>How do heuristics influence<br>risk perception in financial decisions?"] --> B["Methodology<br>Literature Review & Empirical Analysis"] B --> C["Data Inputs<br>Multi-Asset Market Data &<br>Social Science Risk Studies"] C --> D["Computational Process<br>Behavioral Modeling &<br>Heuristic Simulation"] D --> E["Key Findings<br>Cognitive biases distort risk<br>assessment across asset classes"] E --> F["Outcomes<br>Enhanced Behavioral Finance<br>Framework for Multi-Asset Investment"]