In Ganzach’s (2000) experiments the corre- lation 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 ac- tual risk is about zero. Note, however, that in Ganzach’s (2000) studies, the discrepancy arises from a disparity be- tween actual risk and its perception, whereas in the cur- rent 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 corre- lation 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 ac- tual risk is about zero. Note, however, that in Ganzach’s (2000) studies, the discrepancy arises from a disparity be- tween actual risk and its perception, whereas in the cur- rent 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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