In Ganzach’s (2000) experiments the correlation between perceived return and perceived risk was negative, although the correlation between standard risk
and return was positive. Similarly, the current results in- dicate that the correlation between perceived return and perceived risk, as measured by SW (1995), is negative, although the correlation between standard return and actual risk is about zero. Note, however, that in Ganzach’s (2000) studies, the discrepancy arises from a disparity between actual risk and its perception, whereas in the current study there is no difference between actual risk and its perceptions, and the discrepancy arises from a dispar- ity between risk perception (as well as actual risk) and its measurement by SW’s instrument.
In Ganzach’s (2000) experiments the correlation between perceived return and perceived risk was negative, although the correlation between standard riskand return was positive. Similarly, the current results in- dicate that the correlation between perceived return and perceived risk, as measured by SW (1995), is negative, although the correlation between standard return and actual risk is about zero. Note, however, that in Ganzach’s (2000) studies, the discrepancy arises from a disparity between actual risk and its perception, whereas in the current study there is no difference between actual risk and its perceptions, and the discrepancy arises from a dispar- ity between risk perception (as well as actual risk) and its measurement by SW’s instrument.
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