The Moderating Effect of Financial Knowledge on Financial Risk Tolerance

The purpose of this paper is to describe a study that was designed determine what extent subjective and objective measures financial knowledge moderate the relationship between an investor’s risk tolerance demographic factors thought be important descriptors willingness take risk. It determined those who identified as male, with more attained education income, exhibited higher investment (IRT). Subjective (SFK) positively associated IRT. gender IRT moderated by SFK, whereas age (OFK). A positive noted, but OFK, association household income SFK. Findings from indicate while SFK OFK are correlated, they not measuring same underlying construct, such, each moderates relationships differently.