Skip to main content navigation
Site logo
Local Navigation
Not signed in
Sign in

Powered by Sitebuilder
© MMVIII  |  Privacy

New Assessments of Risk Tolerance could Massively Benefit Stock Market


Summary: Financial investments related to tolerance of risk

Press Release

Click here to view the film (broadband)

Connection Options:
Broadband | Narrowband | Transcript | Help


Risk Tolerance could benefit Stock MarketMost investors need to take more risks in their financial investments.

Current financial service culture is weighted toward providing conservative solutions to people's investment needs but researchers from the University of Warwick's Institute of Applied Cognitive Science have devised a new method of obtaining a very precise understanding of a consumer's tolerance of risk. Professor Nick Chater and Dr Neil Stewart have developed a new theory of how people make risky decisions.

The researchers are developing models of "financial personalities" which give a much better understanding of how people's decision-making processes work. They will also explore how consumers are influenced by the contexts in which they take financial decisions. This will help people to improve their financial decisions and banks to improve their services.

By helping people make decisions that match more closely their real level of tolerance of risk, individuals come to much less conservative assessments of which financial products are best for them and analysts believe that, if widely used, the resultant increased level of confidence in risk taking could substantially boost financial markets.

 Further Resources


 General Information

For more information about this film and Research-TV, email, or call 020 7004 7130.

Page contact: Tom Abbott Last revised: Fri 3 Dec 2004
Back to top of page