Pengaruh External Factors Terhadap Risk Perception Dan Expected Return Perception

The purpose of this study is to investigate the effect of external factors on investor’s risk perception and expected return perception in Surabaya. Furthermore, this study also tests the correlation between risk perception and expected return perception. Information, financial advisor, familiarity, and social interaction are the external factors used in this study. By performing Multiple Regression Analysis, this study shows that the external factors affect investor’s risk perception but has no effect on expected return perception. This result indicates that investors really concern on risk.Moreover, Pearson Correlation Test shows that risk perception and expected return perception are in positive correlation. It means that investors have rational perception of risk and return. Key words: information, financial advisor, familiarity, social interaction, risk perception, expected return perception