Risk Taking in Personal Investments
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Risk taking in personal investments was investigated. Participants were a heterogeneous group of 59 males and 54 females at least 30 years old and employed. Results show that individual investors can accurately judge risk level of investments for all but the riskiest categories. However, no relationship was found between knowledge of risk and risk level of chosen investments. Participants did not match risk level of their investments to their self-reported risk level. This study also extended the research of Wong and Carducci (1991) beyond undergraduate participants. No relationship was found between level of sensation seeking and risk level of chosen investments.
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