Dublin Core
Title
Risk Tolerance and Investment Preferences in Bosnia and Herzegovina
Abstract
Risk tolerance is considered as an important factor in making financial decisions, saving and investment choices. This paper has examined level of investment risk tolerance and investment preferences of B&H’s population and it had explored whether demographic and socioeconomic factors to risk tolerance and investment preferences. Using a randomly chosen sample of 200 individuals above the age of 20, empirical analysis has shown that above independent variables that are significantly affecting individual’s risk tolerance are income level, education level and gender. Regression analysis has proven that above average risk tolerance is associated with higher income level and higher education level. Moreover, analysis has supported the assumption that males are more risk tolerant then females. Regarding the investment preferences, obtained results show that the out of eight independent variables, only variable measuring whether an individual has a financial commitment is significantly negatively related to the investment. Keywords: Risk tolerance, Risk aversion, Investment preferences, demographic and socioeconomic factors, regression model, level of significance.
Keywords
Conference or Workshop Item
PeerReviewed
PeerReviewed
Date
2012-05-31
Extent
1327