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In a study of catalog and mailorder houses, both perceptual and objective measures of risk supported the Ushaped riskreturn association proposed by Fiegenbaum and Thomas. Results also supported prospect theorists contention that there is a steeper slope for firms below the target performance. Unlike the prediction by prospect theory that steeper slopes exist around the referent point, steeper slopes were found in the outermost tertiles.
The International Journal of Organizational Analysis – Emerald Publishing
Published: Feb 1, 1994
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