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A Case for Group Risk-Taking

Harvard Business Review

I didn’t realize that noted academics Amos Tversky and Daniel Kahneman were studying this exact phenomenon, which they officially named “ loss aversion.”. As a fund manager, I was very aware that the pain of losing money was markedly worse than the satisfaction of gaining an equal amount. What are the potential downsides?

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Why Those Guys Won the Economics Nobels

Harvard Business Review

[A mini-glossary: beta is the amount that an individual stock fluctuates relative to the overall stock market, and the equity premium is the difference in expected return between stocks and a “riskless” asset such as Treasury bonds.]. It feels like it’s got a little bit of Kahneman and Tversky in it.

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