Investor’s Risk Preference and Tolerance Behaviors about Their Investment Decisions of Highly Risky Investment

Abstract

The basic purpose our research paper is to examine the different patterns of behaviors shown by investors about their investment decisions when the investment opportunity possesses high risk. Some of the characteristics of the investors explored in our research paper that can affect their investment decisions and their risk averse and risk seeking behavior depends on that given factors which are Age, Cultural differences, Gender, Marital status, Employment status, Level of education and Home ownership. After conducting the interviews from 20 investors having different characteristics discussed above we conclude our result that these factors can greatly affect the investment decisions of the investors when they have to invest in highly risky investment opportunity.

Keywords: Risk averse, Risk seeking, financial planners, portfolio management