Portfolio Risk Choices of Finance Sector Professionals in Turkey
29 Pages Posted: 24 Nov 2013 Last revised: 10 Dec 2013
Date Written: November 22, 2013
Asset markets in emerging markets exhibit high volatility and low liquidity. Under such circumstances, individual portfolio and trading choices become difficult. Among emerging markets, Turkey in particular has high turnover, even when compared to developed markets, and this makes it an appealing case to study the risk choices of finance sector professionals. This paper analyzes the determinants of risk choices and preferences of employees of a brokerage company and portfolio managers in this market for their own investments. We use a unique data set from a survey of 206 finance sector professionals in 2012. Specifically, we found that financial literacy, work experience, education, and confidence are positively related with wealth, and trading frequency, education, and low age tend to increase the allocation of equities in portfolio.
Keywords: Risk choices, risk, equity, financial literacy, investor, wealth, emerging markets, Turkey
JEL Classification: G11, G12
Suggested Citation: Suggested Citation