An Empirical Analysis of Investor Behavioral Biases, Investment Risk Tolerance and Decision-Making

It is very necessary for the judgment on financial investment adopted by professional investors to be able to face behavioral biases by recognition of their own psychological traits as well as to take account of their own investment risk tolerance levels. In this research, a survey has been used to assess the association among personality traits, behavioral bias as well as investment risk toleration. The research paper dataset was shortlisted from individual investors who work or operate on capital/finance markets. Chi-square assessments and multivariate regression analysis evaluated the predictions established during the research. Depending on the hypothesis analysis, there was a positive relationship among investor’s behavioral traits as well as behavioral perceptions, as well as the personality characteristics of investment companies that impacted their tolerance levels to potential risk.

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