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Because of the scope of the study, it is not possible to make general statements about the exact variables which should be used in client-specified valuation models. However, the interpretation of the results of the study suggests several tentative conclusions.First, the investor's investment analysis of common stock appears to be a multi-dimensional process. That is, more than one decision variable is involved in the analysis. Hence, it may be reasoned that client-specified valuation models should involve several independent variables.Second, the dividends factor is the most important of the three factors identified through factor analysis. This finding suggests large differences in perceptions among investors concerning the importance of dividends.Third, future expectations and financial stability are the other factors identified through factor analysis. These factors also represent areas of large perceptual differences among investors concerning their importance.Finally, investors are of two distinct types: those who seek dividends and those who seek capital appreciation. This finding provides a partial explanation for the inability of researchers using traditional methodology to predict a firm's stock price behavior. Thus, investors do not comprise a single homogeneous class. This suggests that certain types of stocks prove attractive to particular types of investors, i.e., a "clientele effect." Hence, it is recommended that researchers interested in share price research segment the market by class of investor. Such investigation of investor socioeconomic and behavioral characteristics should prove worthwhile in providing a greater understanding of the factors influencing investor behavior.

The balancing of risk and return represents the classic investor dilemma. In theory, an investor seeks to maximize overall rate of return consistent with a desirable risk level. In practice, investor personal and financial characteristics may influence their risk/return preferences. Investors with similar socioeconomic characteristics tend to have similar risk/return preferences. That is, investors differ significantly in such factors as objectives, tastes, and needs, but most of the these differences may be explained by levels of risk and return investors feel appropriate.There has not been great deal of empiricism on the "positive" aspects of investor behavior. The purpose of this study is to provide some empirical evidence on the relationships, if any, of selected socioeconomic characteristics with the importance individual investors actually assign to the risk/return characteristics of common stock. Specifically, the relationships between each of eight socioeconomic characteristics and five risk and return preference variables.The findings of this study suggest that some socioeconomic characteristics have a greater impact on investor common stock risk and return preferences than do others. When viewed in terms of the number of significant relationships found, the most important socioeconomic characteristic investigated is age, followed by sex, decision orientation, marital status, education, and income.Because of the limited nature of the sample and the fact that some of the findings are inconsistent with previous observations and tests, additional research is needed to generalize the findings. Nonetheless, the findings strongly suggest that individual investor risk/return preferences for common stock reflect their socioeconomic characteristics.