A recent study has presented new findings regarding asset pricing, suggesting a potential shift away from traditional risk assessment. The research examines data across various asset classes and identifies a growing influence of fear as a key driver of investment decisions. Researchers found a correlation between heightened investor anxiety and diminished returns for certain investments. The study’s analysis indicates that fear may be increasingly impacting market behavior, prompting a reconsideration of existing pricing methodologies. Further investigation is underway to fully understand the implications of this trend.
Credits: Finance & economics