Abstract
As personal backgrounds and experiences vary, emotions stemming from exposure to violence shape a manager's risk perception and investment strategies. We document significant variation in the risk exposure of managers who were raised in states with higher per capita violence rates than those who were not. Although managers exposed to violence tend to hold more stocks in their portfolios, take less idiosyncratic risk, hold portfolios with betas closer to 1, and have less concentrated portfolios, these managers' risk-adjusted performance is not statistically different than that of their counterparts who were not exposed to violence.
Thesis Completion
2023
Semester
Fall
Thesis Chair/Advisor
Mullallly, Kevin
Degree
Bachelor Science in Business Administration (B.S.B.A.)
College
College of Business Administration
Department
Finance
Degree Program
Finance
Language
English
Access Status
Campus Access
Length of Campus-only Access
5 years
Release Date
12-15-2028
Recommended Citation
Cespedes, Juan, "The Effect of Exposure to Violence on Risk Aversion of Mutual Fund Managers" (2023). Honors Undergraduate Theses. 1538.
https://stars.library.ucf.edu/honorstheses/1538