The effect of demographics and personality on investment choice among Essay

The outcome of demographics and personality on enthronisation choice among UK investors - onslaught ExampleMany studies have been under demandn across the world by scholars as well as academicians in the field of behavioral finance to explore what all psychological and demographic factors affect personal investment decisions and choice among alternatives. The athletic field authorise Risk Taking and Problem Context in the Domain of losses An Expected Utility Analysis by John C. Hershey and Schoemaker in 1980 observes that women investors are more risk indisposed than men as regards gamble is concerned (Hershey 1980). Another popular study on the gender practices of investiture the researchers remark that both men and women are equally successful in investment decisions and there nominate no significance difference in investment decisions between male and female groups (Hudgen 1985). In an semiempirical study among men and women investors in auctions and lotteries undertaken by W. V Harlow and Keith Brown document that men prefer to take more risk than women as regards lottery and auction investments are concerned (Harlow 1990). In another prodigious study on investment behaviour among individual investors considering their income level William Riley and K Victor Chow attempt to remark that relative risk abomination decreases as one rises above the poverty level and decreases significantly for the very wealthy. It also decreases with age-but only up to a point. After age 65 (retirement), risk aversion increases with age (Riley 1992). However, the authors speculate that education, income and wealth are all highly correlated, so the relationship may be a function of wealth rather than education (Riley 1992). In a research paper entitled Gender Differences in Risk Behavior in Financial-Decision-Making An Experimental Analysis, it is found that regardless of familiarity and framing, be or ambiguity, women prefer investments with lower risk than moderat e and high risk investments avenues (Powell 1997) . The main contention of the study of N. Jianakoplos and Bernasek in 1998 is that women are likely to exhibit more risk aversion characteristics than men when it comes to investment in defined contribution pension assets (Jianakoplos 1998). In the paper Gender Differences in Risk Taking A Meta-analysis, the authors conclude that women would like to take less risk than men (Brynes 1999). Schooley Diane K and Debra Drecnik Worden in their study in 2003 document that educated investors, especially those having education higher than secondary level tend to part their great(p) earned money in risky portfolios (Schooley 2003). The paper also finds that age and proportion of equity retention are positively correlated. In an interesting and popular study entitled Risk Aversion and personality Type by G. Filbeck, Hatfield P. and Horvath P. in 2005, the authors conclude that the relation between personality type and individual ex ante EUT r isk tolerance is non-linear in form (Filbeck 2005). Reviewing the aforementioned studies and papers, the present study attempts to explore the effect of demographic and personality traits on individual investment decision