Septemeber 16 - Smartworking ( 6 hours)

The focus of this day was investigate the impact of behavioral finance on perceived risk of investment in sport. When investigating the degree of risk of an investment, investors use tools of risk management to compare the expected return of the investment and its risk. Usually, the greater risk, requires a greater potential return. The tools that are generally used are the standard deviation to investigate the volatility and the annual return of investment. There are also other tools, such as the Value at Risk (address the relationship between the risk and the portfolio of a company). Despite all these tools are crucial, the behavioral finance tend to mitigate the value of the results of this analysis. The aversion to risk is something common among investors and shareholders, but the behavioral aspects lead investors to weight differently the potential risks. Many investors, also the daily ones, can decide to do a risky investment because of the self-need of belonginess of a determined reality.

Sport is the pioneer economic industry in which the behavior of investors and the non-traditional assets lead investors to take more risks and to value an investment with different criteria, letting the behavioral economy to increase the “sport wave” formed by people that wants to feel part of something that reflects their values, passions and beliefs. Behaviroal investors are not risk-averse as most of traditional investors, but they look for other aspects other than financial profit, such as the need to belong to something bigger.