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Study Ties Testosterone to Market Risks, Losses

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Study Ties Testosterone to Market Risks, Losses

Research News

Study Ties Testosterone to Market Risks, Losses

Study Ties Testosterone to Market Risks, Losses

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  • <iframe src="https://www.npr.org/player/embed/89642170/89642136" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript

An article in the current issue of the Proceedings of the National Academy of Sciences suggests that high testosterone levels can lead to more profit. Testosterone is linked to male aggression and sexual interest. It also promotes confidence and risk-taking. But the study of 17 traders in London suggests that high testosterone also can lead to bigger losses.

The author of the study is a former derivatives trader who felt that market booms and busts couldn't be explained by economics alone. He also says women didn't seem to share the same behavior as men.

Commenting on his study, the Cambridge business school professor says "it would be good for both banks and the financial system as a whole if we had more women and older men in the markets."

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