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...

Emerging literature focuses on insurers' earnings management using estimated liability for unpaid claims, known as loss reserve. An insurance company generally uses the traditional estimation methods with linear estimation to measure loss reserve error, but those methods are often criticized for...

The intention of this study was to document how closely households follow normative descriptions of financial behavior in relation to their financial planning horizon. Modern Portfolio Theory predicts that households, in general, exhibit risk aversion. Aversion to wealth volatility should...

The purpose of this study was to compare and contrast the predictive validity of risk tolerance questionnaires. The tested questionnaires represented measures derived from economic and psychometric theory. It was determined that questionnaires based on economic theory had similar predictive...

The purpose of this study was to test several propositions imbedded in Stanley and Danko's (1996) ground breaking book, The Millionaire Next Door. Given the book's impact in shaping the type of advice provided by those in the media and many financial planners and wealth managers, this study was...