Neil Bage takes a look at the types of risk involved in making important financial decisions and wonders what an ideal outcome looks like
If you scour the pages of any financial journal, you will find hundreds, perhaps thousands of articles about investment risk. You will see conversations around the importance of attitude to risk questionnaires, capacity for loss, or mapping a person's risk profile to an investment model. But often overlooked, or more to the point not sufficiently focussed on, are the other types of risk involved in making important financial decisions. I am not talking about inflation risk, liquidity risk, or credit risk. I am talking about behavioural risks. For me, understanding behavioural risks i...
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