Much of our conversations with clients involve questions about their risk preference.
We discuss past actions, current feelings, and future thoughts on how risk influences our decisions.
But have you ever wondered if men or women take more risk when investing?
Risk Does Recognize Gender
New research has found that men are more likely to take larger risks in their financial decision making than women.
Using a sample set of a group of MBA students the researchers looked for a correlation between higher levels of testosterone and a willingness to take a chance on a less likely outcome if the potential payout was greater.
After graduation, more male students will follow a career path into investment banking or trading on Wall Street where the stakes are always high.
But just because men may be inclined to take more risk, doesn’t mean it makes losing money any easier.
No matter what gender we are, this will always feel uncomfortable.
Photo Credit: Adam Cutler
