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Series

University of Wollongong

2006

Finance and Financial Management

Articles 1 - 2 of 2

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Profiling The Risk Attitudes Of Clients By Financial Advisors: The Effects Of Framing On Response Validity, M. Mccrae Jan 2006

Profiling The Risk Attitudes Of Clients By Financial Advisors: The Effects Of Framing On Response Validity, M. Mccrae

Faculty of Business - Accounting & Finance Working Papers

The Australian Financial Services Reform Act (2001) now requires all registered financial planners to assess a client’s attitude towards investment risk as an integral part of establishing a ‘reasonable’ basis for investment advice to a client. However, the Act is silent on required procedures or acceptable minimum standards of risk assessment. Unfortunately, current methods for assessing a client’s attitudes towards investment risk are mostly informal, untested and ignore such behavioral biases as framing and other response anomalies. Unless controlled for, these anomalies can invert risk attitude responses and invalidate portfolio choices recommended to the client on the basis of this …


A Model Of Trust Between Branch Managers And Loan Officers Of Indian Banks, S. Bhati Jan 2006

A Model Of Trust Between Branch Managers And Loan Officers Of Indian Banks, S. Bhati

Faculty of Business - Accounting & Finance Working Papers

The lending climate for banks in India is very different from those in western countries. Banks in India undertake many additional risks when they lend to customers . Also, there are a number of impediments for banks in India for recovering their loans. Some of these impediments have been put in place due to the government policies. Others have been created due to lack of proper legal protection to banks. The instrument based quantitative methods have limitations in evaluating the lending risk for banks in India because instrument based methods use variables which cannot be accurately described and measured by …