A test of traditional and psychometric relative risk tolerance measures on household financial risk taking

Barsky, 1997, Preference parameters and behavioral heterogeneity: an experimental approach in the health and retirement study, Quarter. J. Econ., 112, 537, 10.1162/003355397555280 Chhabra, 2005, Beyond Markowitz: a comprehensive wealth allocation framework for individual investors, J. Wealth Manag., 7, 8, 10.3905/jwm.2005.470606 Dow, 1992, Uncertainty aversion, risk aversion, and the optimal choice of portfolio, Econometrica, 60, 197, 10.2307/2951685 Dwyer, 2002, Gender differences in revealed risk taking: evidence from mutual fund investors, Econ. Lett., 76, 151, 10.1016/S0165-1765(02)00045-9 Faff, 2009, Nonlinear linkages between financial risk tolerance and demographic characteristics, Appl. Econ. Lett., 16, 1329, 10.1080/13504850701381123 Frey, 2017, Risk preference shares the psychometric structure of major psychological traits, Sci. Adv., 3, 10.1126/sciadv.1701381 Grable, 1999, Financial risk tolerance revisited: the development of a risk assessment instrument, Financ. Serv. Rev., 8, 163, 10.1016/S1057-0810(99)00041-4 Hanna, 2001, A measure of risk tolerance based on economic theory, J. Financ. Counsel. Plan., 12, 53 Hanna, 2004, An improved measure of risk aversion, J. Financ. Counsel. Plan., 15, 27 Harrison, 2017, Small stakes risk aversion in the laboratory: a reconsideration, Econ. Lett., 160, 24, 10.1016/j.econlet.2017.08.003 Hoffmann, 2015, How investor perceptions drive actual trading and risk-taking behavior, J. Behav. Finance, 16, 94, 10.1080/15427560.2015.1000332 Huber, 2003, Asset allocation recommendations of financial advisors: are they risk/return optimal?, J. Wealth Manag., 6, 21, 10.3905/jwm.2003.320480 Klement, 2012, Kicking the habit: how experience determines financial risk preferences, J. Wealth Manag., 15, 10, 10.3905/jwm.2012.15.2.010 Kuzniak, 2015, The Grable and Lytton risk tolerance scale: a 15-year retrospective, Financ. Serv. Rev., 24, 177 Markowitz, 1952, Portfolio selection, J. Finance, 7, 77 Mayo, 2017 Rabbani, 2017, Stock market volatility and changes in financial risk tolerance during the Great Recession, J. Financ. Counsel. Plan., 28, 140, 10.1891/1052-3073.28.1.140 Rom, 2000, The psychology of money, J. Wealth Manag., 3, 15, 10.3905/jwm.2000.320388 Weber, 2002, A domain-specific risk-attitude scale: measuring risk perceptions and risk behaviors, J. Behav. Deci. Mak., 15, 263, 10.1002/bdm.414 Yao, 2011, Do market returns influence risk tolerance? Evidence from panel data, J. Family Econ. Issues, 32, 532, 10.1007/s10834-010-9223-2