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Investment risk – The perspective of individual investors


  • Sachse, Katharina
  • Jungermann, Helmut
  • Belting, Julia M.


The aim of the research presented in this paper is to investigate the perceived investment risk of lay investors. Two surveys were conducted to examine the financial risk perception of German individual investors (N=119 in study 1; N=171 in study 2). Participants were asked to rate the risk and several aspects of different types of investment products (e.g. shares and bank savings books).

Suggested Citation

  • Sachse, Katharina & Jungermann, Helmut & Belting, Julia M., 2012. "Investment risk – The perspective of individual investors," Journal of Economic Psychology, Elsevier, vol. 33(3), pages 437-447.
  • Handle: RePEc:eee:joepsy:v:33:y:2012:i:3:p:437-447 DOI: 10.1016/j.joep.2011.12.006

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    References listed on IDEAS

    1. Christine R. Harris & Michael Jenkins & Dale Glaser, 2006. "Gender differences in risk assessment: Why do women take fewer risks than men?," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 1, pages 48-63, July.
    2. Duxbury, Darren & Summers, Barbara, 2004. "Financial risk perception: Are individuals variance averse or loss averse?," Economics Letters, Elsevier, vol. 84(1), pages 21-28, July.
    3. Veld, Chris & Veld-Merkoulova, Yulia V., 2008. "The risk perceptions of individual investors," Journal of Economic Psychology, Elsevier, vol. 29(2), pages 226-252, April.
    4. Alexander Klos & Elke U. Weber & Martin Weber, 2005. "Investment Decisions and Time Horizon: Risk Perception and Risk Behavior in Repeated Gambles," Management Science, INFORMS, vol. 51(12), pages 1777-1790, December.
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    Cited by:

    1. Muehlfeld, Katrin & Weitzel, Utz & van Witteloostuijn, Arjen, 2013. "Fight or freeze? Individual differences in investors’ motivational systems and trading in experimental asset markets," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 195-209.
    2. Lambert, Jérôme & Bessière, Véronique & N’Goala, Gilles, 2012. "Does expertise influence the impact of overconfidence on judgment, valuation and investment decision?," Journal of Economic Psychology, Elsevier, vol. 33(6), pages 1115-1128.
    3. Jürgen Huber & Stefan Palan & Stefan Zeisberger, 2017. "Does Investor Risk Perception Drive Asset Prices in Markets? Experimental Evidence," Working Paper Series, Social and Economic Sciences 2017-05, Faculty of Social and Economic Sciences, Karl-Franzens-University Graz.
    4. repec:eee:joepsy:v:61:y:2017:i:c:p:191-202 is not listed on IDEAS
    5. K.S. Muehlfeld & G.U. Weitzel & A. van Witteloostuijn, 2012. "Fight or freeze? Individual differences in investors’ motivational systems and trading in experimental asset markets," Working Papers 12-18, Utrecht School of Economics.

    More about this item


    Perceived risk; Investment decisions; Individual investors; Investment risk perception;

    JEL classification:

    • D - Microeconomics
    • D - Microeconomics


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