Financial risk aversion and financial risk tolerance are sometimes considered to be ‘opposite sides of the same coin’, with the implication being that risk aversion (a term describing the unwillingness of an investor to take risks based on a probability assessment) and risk tolerance (an...

The purpose of this paper is to describe a study that was designed to determine to what extent subjective and objective measures of financial knowledge moderate the relationship between an investor’s financial risk tolerance and demographic factors thought to be important descriptors of an...

Life insurance, a risk management tool, generally provides ways to protect against the financial loss due to an individual's death. This study investigates risk tolerance profile of cash-value life insurance owners and attempts to investigate the association between life insurance ownership and...

Financial risk tolerance is an important concept that helps financial planners recommend financial products to their clients. As the baby boomer generation approaches retirement, research to determine how these individuals perceive financial risk tolerance has grown exponentially. The present...

Using a sample of 386 financial advisors and 458 of their clients, the study sought to determine how effective financial advisors and clients are at estimating risk-tolerance, and to test how well items from a risk tolerance test and demographic information can represent the judgmental process...

This study explores the effectiveness of various methods for measuring risk tolerance, with the aim to better understand the risk-taking attitudes and behaviors of financial decision-makers. Using data collected between October 2020 and March 2021, the research investigates three key areas: (a)...