Investors' ability to withstand risk has remained fairly stable through the bull market of 2003-07 and the subsequent bear market, according to a new report by FinaMetrica.
The Australian risk-profiling company says that most surveys that try to gauge investors' risk tolerance only account for risk tolerance but not for risk perception.
"Not only will risk perception have been a factor at the time the investment decision was made but, if there has been no rebalancing, the current proportion of stocks/shares/equities will be attributable to market rises and falls in addition to any investor characteristics," the report stated.
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