This article is very interesting and should be read. You can find it at:http://finance.yahoo.com/news/Using-Logic-To-Examine-investopedia-437029966.html?x=0In 1660, Blaise Pascal did some pioneering work on risk. He was dealing with theology, but the implications for the capital market are unmistakable. His original concern was the expected value of believing in god.. He attempted to convert nebulous uncertainties into calculable probabilities – what we now call risk. His “expected values” are the basis of modern risk theory. Pascal demonstrated that uncertainty is about people, their beliefs and their courage, while calculated risk is based on information, knowledge and credible scenarios. Together with his colleague, Pierre de Fermat, Pascal came to the conclusion that people are naturally risk averse – the more risk is involved with a particular asset, the greater the return that investors will require as compensation. However, many consumers have a skewed perception of the risk they actually are taking on. In this article, we’ll take a look at how consumers’ often skewed perceptions of risk can be just plain risky.