Financial Investment Opportunities

6174 Words Mar 7th, 2013 25 Pages
Financial Investment Opportunities o Kim Tuy n – Sally – F04-193

A report on
Investment and Taxation Decisions

Prepared for:
Ms Joey Lai (Lecturer)
Unit 39: Financial Investment Opportunities
Banking Academy, Hanoi
BTEC HND in Business (Finance)

Prepared by: o Kim Tuy n – Sally – Class F04A
Registration No.: ITP F04-193
Submission Date: 21 November, 2012

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Financial Investment Opportunities o Kim Tuy n – Sally – F04-193

TABLE OF CONTENTS

INTRODUCTION ............................................................................................................. 3
Part 1. Range of investment available to individuals .................................................... 3
1.1 Assessment of the attitude of individuals to risk when
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In case investor already has been investing, Investor‟s current financial statement needs to be clarified.
Demographic data effect directly to investment behaviour especially risk tolerance of investors. Those elements may encourage individual to invest their money or keep money by their side (take risk or not); or if they can invest, amount of investing money (level of risk they can accept) is also defined by demographic data.
The tool used for analysing an individual‟s background is Questionnaire.
Questionnaire helps researchers reach lots of people. It does not cost much time and money. It is easy to be filled in by using multiple choices. Result of statistic then is calculated fast and precise. Sample questions are provided in Appendix.
Step 2. Assessing Risk Tolerance
On the basis of those elements above, risk attitudes of a person will be very different from others. The table below shows findings of researchers about risk tolerance based on several factors.
Factors

Researchers

Assumptions

Gender

Bruce and Johnson women take less investment risk
(1994)
Jianakoplos

and a far lower percentage of women than men are willing to

Barnesek (1998)
Age

Lewellen
(1977)

et

take any financial risk at all al. young people are less risk averse then elder people in the same task

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Financial Investment Opportunities o Kim Tuy n – Sally – F04-193

Marital

Grable (1997, p.14)

status

single individuals have