RISK AVERSION AND FINANCIAL EFFECTS INTO THE ASSET MANAGEMENT INDUSTRY

Mihai Chişu

Romanian Economic Business Review, 2019, vol. 14, issue 2, 25-39

Abstract: The risk concept is multi-dimensional in terms of the approach taken in the context of studies on financial investor behavior. Risk assumption is context-dependent and, at the same time, subject to observation. Risk attitude is important to explain why an investor is interested or not to invest in capital markets, but also to determine the amount of money it invests. Studies on investor perceptions about risk and return on ordinary financial securities reveal significant differences between professional and non-professional investors. That's why investors' willingness to take risks needs to be analyzed and evaluated in context. There is no best or only way in which attitude to risk can be assessed or predicted, anticipated. This is why specific context-sensitive tools are needed. Depending on economic dynamics, political, social, environmental or demographic changes, the management of the investment portfolio will constantly require careful monitoring and continued adaptation to the requirements or expectations of the financial market

Keywords: risk aversion; asset management; portfolio; behavior finance (search for similar items in EconPapers)
Date: 2019
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