RT Journal Article
SR Electronic
T1 Wealthy Investor Attitudes, Expectations, and Behaviors Toward Risk and Return
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 12
OP 18
DO 10.3905/jwm.2004.412350
VO 7
IS 1
A1 Jeffrey L. Evans
YR 2004
UL https://pm-research.com/content/7/1/12.abstract
AB The article discusses findings of surveys conducted by the Institute for Private Investors, about wealthy investors' attitudes toward risk, expectations of future portfolio returns, and behaviors in the use of risk metrics. These attitudes, expectations, and behaviors are examined in relation to historical stock market performance and demographic factors such as age, gender, and respondent status as a family office executive. In a cross-sectional analysis, the author reports on the lack of correlation of risk and expected return, and on evidence of investor overreaction. These conclusions seem to support behavioral finance theory. The author concludes with suggestions for investors and advisors to ameliorate these biases.