The return of risk : on the interrelations between risk, return and human decisions*

Abstract

For many years, optimism and euphoria reigned on the European and US stock markets. The major market indices consistently showed a substantial rate of return. Many new investors were attracted to the stock markets, initially earning wonderful returns on their portfolios. In the late nineties and the first half of 2000, results were particularly impressive, mainly thanks to the performance of Internet and technology stocks.