Researchers identified a group of 254 investors and gave them four different formats of the same investment option and then interviewed them on how understandable the options were as well as the risk of the assessment. They found that only 1% of investors were able to tell that the same stock, shown in the different formats, had the same levels of risk. Only 53% of investors could correctly tell which of two options had more risk when given two options in these formats. As a result, the website by CONSOB, the public authority that regulates Italian markets, now offers financial information in several formats and allows users to choose their format.
Other Applications: Charitable Giving, Voting Behavior, Law Abiding Behavior