JOURNAL OF APPLIED BUSINESS AND ECONOMICS
Risk Tolerance: A Measurement Tool for Financial Novices
Author(s): Kadir C. Yalcin
Citation: Kadir C. Yalcin, (2021) "Risk Tolerance: A Measurement Tool for Financial Novices," Journal of Applied Business and Economics, Vol. 23, Iss.4, pp. 46-53
Article Type: Research paper
Publisher: North American Business Press
Abstract:
Assessing a risk tolerance is vital for healthy financial decisions. Common surveys used to assess risk tolerance use language and jargon beyond the scope of financial novices. The purpose of this study is to develop an instrument to measure and evaluate the financial risk tolerance of the financial novices by providing a questionnaire that can be easily and quickly completed. The paper statistically documents that the Covid-19 has no impact on financial risk tolerance level, male participants are more risk tolerant than female participants, and there is a significant association between gender and the risk tolerance level among the non-minority participants.