Why do we prefer what we prefer? Take cereal bars. Do I genuinely prefer an almond bar over one with hazelnuts most of the time? Or does this almond bar look like the one I had the other day, which was delicious, and happend to have almonds? (I personally prefer chocolate, but that’s a different story.)
What is financial risk to humans? Is it how much they can loose? Is it how predictable their returns are? Is it variance? Or something differently entirely?