Investor Risk/Return Preferences (Part I): Professional and Financial Characteristics

Atlanta Economic Review, Vol. 27, No. 3, pp. 48-54, May-June 1977

8 Pages Posted: 6 Jun 2015 Last revised: 29 Aug 2015

See all articles by H. Kent Baker

H. Kent Baker

American University - Kogod School of Business

Michael Hargrove

Independent

John A. Haslem

University of Maryland - Robert H. Smith School of Business; University of Maryland - Robert H. Smith School of Business

Date Written: August 28, 2015

Abstract

This study extends previous inquiries concerning positive (as opposed to normative) aspects of common-stock investor behavior and provides preliminary empirical evidence on the association between risk/return preferences and expectations for specified investor attributes.

Part I of the study analyzes these relationships for defined professional and financial investor characteristics: (1) education, (2) occupation, (3) family income, and (4) dollar holdings of common stock. A central, and perhaps unique, aspect of the study is the simultaneous analysis of various risk/return preference relationships (tradeoffs) for each specified investor characteristic.

Previous research by the authors in this area originated with earlier criticisms of the methodology used in empirical research on equity valuation. These criticisms recommended that the research methodology be redirected to include include internal methods, such as survey research.

Suggested Citation

Baker, H. Kent and Hargrove, Michael and Haslem, John A. and Haslem, John A., Investor Risk/Return Preferences (Part I): Professional and Financial Characteristics (August 28, 2015). Atlanta Economic Review, Vol. 27, No. 3, pp. 48-54, May-June 1977, Available at SSRN: https://ssrn.com/abstract=2614501

H. Kent Baker

American University - Kogod School of Business ( email )

4400 Massachusetts Avenue NW
Washington, DC 20816-8044
United States
202-885-1949 (Phone)
202-885-1992 (Fax)

Michael Hargrove

Independent

John A. Haslem (Contact Author)

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742
United States
202-387 2025 (Phone)

University of Maryland - Robert H. Smith School of Business ( email )

5901 MacArthur Blvd NW 124
Washington, DC DC 20016
United States
202-236 3172 (Phone)

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