This Study Introduces psychometric and psychological tools and their application in assessing individual decisions. In the following, the ability of the BART, Balloon Analogue Risk Task, in predicting the financial risk-taking level is measured. To support this claim, a More
This Study Introduces psychometric and psychological tools and their application in assessing individual decisions. In the following, the ability of the BART, Balloon Analogue Risk Task, in predicting the financial risk-taking level is measured. To support this claim, active investors in Tehran Stock Exchange has taken the BART test and their risk-taking level is measured by the test variables. Accordingly, the activity of these tested examiners will be observed during the next year in the Tehran Stock Exchange. Assuming the Beta stability, the participants' portfolio Beta will be the indicators of their financial risk-taking and their investment decisions.The outcome of the Study shows a meaningful relationship between the gained scores of the BART test as a general risk-taking indicator and the examiners' portfolio Beta as a risk-taking indicator. These results show that we can rely on this test (BART) as a tool to predict the investors' behavior.
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