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Financial Risk Tolerance

  • John E. GrableEmail author
Chapter

Abstract

This chapter provides an overview of the important role financial risk tolerance plays in shaping consumer financial decisions. A review of normative and descriptive models of risk tolerance is provided. Additional discussion regarding the measurement of risk tolerance is also presented. The chapter includes the presentation of a conceptual model of the principal factors affecting financial risk tolerance with recommendations designed to enhance the consumer finance field’s knowledge of risk tolerance. The chapter concludes with a summary of additional research needed to better understand the multidimensional nature of risk tolerance.

Keywords

Behavioral finance Decision making Demographics Financial risk tolerance Risk aversion Risk taking Risk tolerance 

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Copyright information

© Springer International Publishing Switzerland 2016

Authors and Affiliations

  1. 1.Department of Financial Planning, Housing and Consumer EconomicsUniversity of GeorgiaAthensUSA

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