The development of a risk assessment instrument: A follow-up study

From: Financial Services Review | Date: October 1, 2003| Author: | Copyright information

Abstract

The purpose of this paper is to offer empirical evidence regarding the validity of a 13-item financial risk tolerance assessment instrument originally published by Grable and Lytton (1999) in this Journal. Bivariate and multivariate analyses were used to evaluate data from a sample of individuals who reported both having investment assets and making their own investment decisions. The analysis indicated that responses to the 13-item instrument were correlated with portfolio asset ownership as explained by Modern Portfolio Theory. These findings offer support for the concurrent ...

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