Date of Award

5-14-2012

Document Type

Open Access Honors Thesis

Degree Name

Bachelor of Science in Management

Department

Accounting and Finance

Advisor

Sally Wright

Director

Jeffrey Keisler

Subject Categories

Business | Finance and Financial Management

Abstract

Risk aversion is a concept that tries to understand an individual’s choice, when two options are presented with different levels of risk and reward. This concept can be applied to finance when looking at investors decisions to invest in options with different levels of risk and returns. This study examines if having played a collegiate sport will impact the level of risk aversion an investor has. In order to determine this, an experiment was given to Graduate students working on a Master’s degree in business. The experiment consisted of six different stock options representing different levels of risk. From this data, it was found that playing a collegiate sport makes an investor more likely to invest in a risky investment, as well as value that investment as less risky than it should be valued.

Creative Commons License

Creative Commons Attribution-Noncommercial-Share Alike 3.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 3.0 License.

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