Investor Risk Profiling: An Overview Investor Risk Profiling: An Overview

Investor Risk Profiling: An Overview

Publisher Description

The current standard process of risk profiling through questionnaires is highly unreliable and typically explains less than 15% of the variation in risky assets between investors—mostly because the questionnaires focus on socio-economic variables and hypothetical scenarios. The existing research in risk profiling shows, however, that several factors can provide more accurate and reliable insights into the risk profile of investors. Among these factors are the lifetime experiences an investor has had, the financial decisions made in the past, and the influence of family and friends as well as advisers. By using these factors, practitioners can get a better understanding of their clients’ preferences in order to recommend suitable investment strategies and products.

GENRE
Business & Personal Finance
RELEASED
2015
28 April
LANGUAGE
EN
English
LENGTH
28
Pages
PUBLISHER
CFA Institute Research Foundation
SIZE
371.5
KB

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