Exam 3: The Influence of Hormones on Financial Risk Taking; Sleep, Coffee, and Investing

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What are two ways that researchers examine the effect of sleep on the aggregate stock market?

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Scholars examine how the stock market historically reacts to daylight savings time and seasonal affective disorder.

How does poor sleep affect risk taking?

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Poor sleep is associated with increased risk aversion.

How do stimulants like coffee affect financial decisions?

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While stimulants may keep people awake, they do not combat the effect of lack of sleep on financial decisions.

How are testosterone and cortisol related to irrational financial behavior?

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Why is testosterone known as the male hormone and cortisol known as the stress hormone? How do these hormones influence decisions?

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How does more than 24 straight hours without sleep or consistently getting less than 6 hours of sleep effect the body?

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What do proxies of testosterone exposure show us about risk aversion?

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How are testosterone and cortisol related to risk aversion?

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