An Empirical Study on the Relationship between Personal Financial Risk Attitude and Psychological Risk Attitude
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Authors
Garg, Manish
Puri, Aditya
Wang, Ziping
Issue Date
2012
Type
Presentation
Language
Keywords
Faculty research day
Alternative Title
Abstract
Description
Traditional economic theories assumethat individuals are endowed with certain risk preferences that are unaltered by experiences. However, recent evidence indicates that physiological, cultural, and behavioral factors play an important role in an individual's willingness to take financial risks. In the context of investment decisions, many financial companies ask customers to complete a survey before they can help the customers on financial investment or portfolios. The idea and motivation behind the study stems from one of the fundamental issues of human nature - our tolerance to risk in various facets of life. Through this study we wanted to correlate innate human nature to financial risk tolerance, especially considering when planning an individuals investment strategy.
Citation
Poster 17