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VOL. 6, ISSUE 2 (2024)
Individual investor's financial risk tolerance in Nepal
Authors
Karishma Acharya
Abstract
This research paper employs a quantitative
approach with a descriptive and causal comparative research design to examine the
intricate relationship between risk tolerance and various demographic
variables, including age, gender, marital status, occupation, educational
qualifications, investment knowledge, and personality traits. A structured
questionnaire was utilized for data collection, with a sample size of 395
participants. Reliability of the questionnaire was determined after ensuring
reliability and consistency through Cronbach's Alpha testing. Purposive
sampling was employed, and statistical analyses, including descriptive
statistics, Kruskal-Wallis test, Mann-Whitney U test, pair wise comparison
method, correlation analysis, cross-tabulation method, and regression models,
were applied to interpret and analysis of data. Risk tolerance levels were
categorized as higher, moderate, and low, revealing differences across age,
marital status, occupation, and educational qualification categories. However,
gender was not found to significantly impact risk tolerance distribution. The
study further identifies a positive correlation between personality traits and
risk tolerance, as well as a positive association between risk tolerance and
investment knowledge. Notably, the research indicates that males, single and
business man tend to exhibit higher risk tolerance levels, while young,
educated, single individuals, particularly students, demonstrate a proclivity
for risk-taking behavior.
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Pages:80-86
How to cite this article:
Karishma Acharya "Individual investor's financial risk tolerance in Nepal". International Journal of Finance and Commerce, Vol 6, Issue 2, 2024, Pages 80-86
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