Work

empirical investigation of personal financial risk tolerance

Year: 2004

Type: article

Abstract: We analyze a large database of psychometrically derived financial risk tolerance scores (RTS) and associated demographic information. We find that people's self-assessed risk tolerance generally accords with RTS. Furthermore, we find that gender, age, number of dependents, marital status, income, and wealth arc significantly related to the RTS. Notably, the relationship between age and risk tolerance exhibits a significant nonlinear structure.

Source: Financial Services Review

DOI: 10.61190/fsr.v13i1.4782

Authors: Terrence A. Hallahan, Robert W. Faff, Michael D. McKenzie

Institutions: RMIT University, Monash University

Language: English

Topic: Financial Literacy, Pension, Retirement Analysis

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W1761808342

FWCI: 25.07

Cites: 28

Cited by: 474

Related to: 10