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Investment Risk Tolerance amongst South African University Students in the Vaal Triangle Area

Author

Listed:
  • Antonios Evangelou

    (Post Graduate Student, North West University, South Africa,)

  • Sune Ferreira-Schenk

    (Programme Leader for Risk Management, School of Economic Sciences, North West University, South Africa,)

  • Lorainne Ferreira

    (Senior Lecturer, School of Economic Sciences, North West University, South Africa,)

  • Elizabeth Bothma

    (Statistician, Optentia Research Unit, North West University, South Africa)

Abstract
Analysing students risk tolerance during the investor life cycle is imperative to students and financial planners alike, to facilitate the implementation of suitable investments and investment strategies. Students in universities do not have the required knowledge to invest and this is why an investment framework was created to assist, guide and inform students of what stage of the individual investor life cycle that they are in and suggest suitable investment strategies. The article implemented a quantitative approach, using secondary data analysis. The data used for the analysis is from a self-administered questionnaire in 2017 that was distributed to a sample of 396 students from two higher education institutions in the Vaal Triangle region. Two validated risk tolerance scales were used to analyse students risk tolerance levels. The objective of this paper was to determine the risk tolerance levels of students in the Vaal Triangle region. The two results from the 13-item scale and the single-item scale for measuring risk tolerance indicated that the students have a medium risk tolerance level.

Suggested Citation

  • Antonios Evangelou & Sune Ferreira-Schenk & Lorainne Ferreira & Elizabeth Bothma, 2022. "Investment Risk Tolerance amongst South African University Students in the Vaal Triangle Area," International Journal of Economics and Financial Issues, Econjournals, vol. 12(1), pages 13-23.
    • Handle: RePEc:eco:journ1:2022-01-03
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    References listed on IDEAS

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    More about this item

    Keywords

    Investing; Students; Demographic Factors; South Africa; Risk Tolerance;
    All these keywords.

    JEL classification:

    • D92 - Microeconomics - - Micro-Based Behavioral Economics - - - Intertemporal Firm Choice, Investment, Capacity, and Financing
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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