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Client risk profile – the Portuguese case

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Detalhes bibliográficos
Resumo:This consulting project, Client risk profile – the Portuguese case, commissioned by BPI Asset Management, investigates the most relevant factors that determine the risk aversion of Portuguese investors. Using qualitative and quantitative research methods, we demonstrate why the average Portuguese citizen tends to be excessively risk-averse compared to its European peers. The quantitative analysis was based on our survey’s results. A multiple linear regression using various factor variables allowed us to analyze the effect of each factor on the Portuguese investor’s risk aversion and the correlation between them. After that, individual portfolios were designed for the different risk profiles, maximizing return while respecting the maximum drawdown desired by the investors and calculated the VaR. Afterwards, a deeper dive into each factor is explained for better understanding on its effect on risk aversion.
Autores principais:Winkelbauer, Marc
Assunto:Age Education Financial literacy Gender Income Wealth Health Housing Risk profile Risk aversion Investing Risky assets
Ano:2023
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso aberto
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:This consulting project, Client risk profile – the Portuguese case, commissioned by BPI Asset Management, investigates the most relevant factors that determine the risk aversion of Portuguese investors. Using qualitative and quantitative research methods, we demonstrate why the average Portuguese citizen tends to be excessively risk-averse compared to its European peers. The quantitative analysis was based on our survey’s results. A multiple linear regression using various factor variables allowed us to analyze the effect of each factor on the Portuguese investor’s risk aversion and the correlation between them. After that, individual portfolios were designed for the different risk profiles, maximizing return while respecting the maximum drawdown desired by the investors and calculated the VaR. Afterwards, a deeper dive into each factor is explained for better understanding on its effect on risk aversion.