In order to test the determinants of risk tolerance, a number of different
demographic factors may be considered. The data collected from the Personal
Investor Magazine survey provides information as to gender, age, education, marital
status, number of dependents, personal income, combined family income and net
assets. (This demographic data is collected as part of the ProQuest Risk Profiling
process.) It is possible to quantify the effect of each of these demographic
characteristics on the risk tolerance of an individual using statistical analysis. The
model to be tested in this paper hypothesises that the RTS for individual i is a
function of each of these demographic characteristics,
In order to test the determinants of risk tolerance, a number of differentdemographic factors may be considered. The data collected from the PersonalInvestor Magazine survey provides information as to gender, age, education, maritalstatus, number of dependents, personal income, combined family income and netassets. (This demographic data is collected as part of the ProQuest Risk Profilingprocess.) It is possible to quantify the effect of each of these demographiccharacteristics on the risk tolerance of an individual using statistical analysis. Themodel to be tested in this paper hypothesises that the RTS for individual i is afunction of each of these demographic characteristics,
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