RT Journal Article
SR Electronic
T1 The Impact of September 11 on Investors' Risk Aversion
JF The Journal of Investing
FD Institutional Investor Journals
SP 72
OP 79
DO 10.3905/joi.2003.319546
VO 12
IS 2
A1 Mark Wrolstad
A1 Thomas Krueger
YR 2003
UL https://pm-research.com/content/12/2/72.abstract
AB The September 11, 2001, terrorist attacks provide a rare opportunity to witness a dramatic shift in investors' risk aversion. The attacks had a huge impact on investors not only because of the significant damage that occurred in both lives and economic value but because of the nearly total surprise achieved by the attackers. This article uses exchange-traded funds (ETFs) to analyze equity returns, beta values, and security market line slopes both before and after the attacks. Using ETFs allows us to also look at the performance of individual industrial indexes and sectors. Finally, we offer some guidance to investors who may unfortunately find themselves facing a similar situation in the future.