Our speaker will be Phillipp Gnan (Vienna University of Economics and Business).

He will give a talk on “Revisiting Discount Rates: New Evidence from Surveys” (joint with Maximilian Schleritzko).
 

Abstract: This paper studies retail investors’ risk-return trade-off. Existing evidence from surveys suggests that households expect lower returns, i.e., lower risk compensation, in bad times. Using a direct measure of retail investors’ subjective discount rates, we find that required compensation for risk nevertheless rises with perceptions of stock market risk. This finding resonates well with long-established principles in asset pricing. We also show that discount rates and perceived risk are more tightly connected for financially literate retail investors and during times of financial and economic distress. Our results have important implications for modelling households’ risk-return trade-off and the design of future surveys eliciting return expectations.

The talk will take place on Oktober 5, 2022 hybrid in room D3.0.233 at 12:00 noon.

Alternatively, you can follow the talk via MS Teams. A direct link to the stream will be posted on our website.