Determinants of Financial Risk Tolerance: An Analysis of Psychological Factors

Financial risk tolerance is a complex process that goes beyond the exclusive use of demographic characteristics. Despite necessity developing comprehensive financial measurement model, psychological factors might be important have been long overlooked. The purpose this paper to investigate influence on level. sample (n = 1204) comprises university students from different parts Malaysia. Significant differences are found as function gender and race. Students with high (FRT) positively correlated propensity for regret, trust, attribute success luck, overconfidence, social interaction, but not happiness in life. These findings highlight importance individual propensities assessing level person. This study will act an aid advisors understanding behavior attitudes their clients.