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INDIVIDUAL RISK PREFERENCE IN PORTFOLIO SELECTION.
- Source :
- Journal of Finance (Wiley-Blackwell); Mar1960, Vol. 15 Issue 1, p45-52, 8p
- Publication Year :
- 1960
-
Abstract
- The article examines individual risk preferences in portfolio management using a model of individual choice behavior which considers estimated payouts and the probability of a bad year for investment returns. Four hypotheses are tested that relate to wealth-holders' preference for low-risk investments with high returns and premiums that appeal to the gambling instinct. Students at the University of North Carolina and Duke University participated in the survey by selecting either risky or standard portfolio investments on a questionnaire. Research methods include payout matrixes and a geometric measure for delimiting individual risk preference.
Details
- Language :
- English
- ISSN :
- 00221082
- Volume :
- 15
- Issue :
- 1
- Database :
- Complementary Index
- Journal :
- Journal of Finance (Wiley-Blackwell)
- Publication Type :
- Academic Journal
- Accession number :
- 6637290
- Full Text :
- https://doi.org/10.2307/2976453