This experimental study is concerned with the impact of the timing of the resolution of risk
on investment behavior, with a special focus on the role of affect. In a between-subjects
design, we observe the impact of a substantial delay of risk resolution (2 days) on investment
choices. Besides the resolution timing all other factors, including the timing of payout,
are held constant across treatments. In addition, state-of-the-art experimental
techniques from experimental economics and psychology are used for eliciting preferences
and to explicitly measure emotions and personality traits. Participants put their own
money at stake. Our main finding is that the timing of the resolution of risk matters for
investment, modulated by the probability of investment success. Emotions are found to
play a significant role in this respect and explain our main finding. Our results support
recent models of decision making under risk trying to incorporate anticipatory emotions
but also uncover some important shortcomings related to the dynamics of emotions