Station 2: Understanding Risk Profiling (UI)
15 min! Run Time
Employees
only
Provided
Friendly
Access
Key Words
Description
Is the glass half full or half empty? That is the question.
Understanding Risk Profiling examines the diversity of human perception, and particularly the paradox that the same investment may appeal to one investor while being equally unattractive to another. Personal preferences play a key role in assessing investment prospects, and must be layered on top of the already complex relationship between risk and return.
This course explores this seemingly contradictory aspect of human nature through principles originally developed by the 18th-century Swiss mathematician and physicist Daniel Bernoulli, using an imaginary game of chance he called the "Saint Petersburg Paradox." You can play a similar game to find out your risk score and discover whether your profile is what you thought it would be.
System Requirements
See System Requirements in the Coggno Knowledge Base
Table of Contents
1. The Paradox
2. Getting to Grips with "Worth"
3. Measuring Attitudes Toward Risk
4. Making it Personal
5. Assessment