Gender, risk tolerance, and false consensus in asset allocation recommendations
Nicolas P.B. Bollen and
Journal of Banking & Finance, 2018, vol. 87, issue C, 304-317
We study the impact of gender on asset allocation recommendations. Graduate business students and professional wealth managers are randomly assigned a male or female client. Participants recommend an allocation and choose an allocation for themselves. Male students choose a riskier allocation than female students, consistent with existing evidence of a gender difference in risk tolerance, and recommend a riskier allocation. In contrast, male and female wealth managers choose and recommend the same allocation, indicating that male and female finance professionals feature similar risk preferences. In both samples, a subject's allocation choice is the strongest predictor of the recommendation provided.
Keywords: Risk tolerance; Gender; Asset allocation (search for similar items in EconPapers)
JEL-codes: D14 G02 G11 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbfina:v:87:y:2018:i:c:p:304-317
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