In: Accounting
the women are more risk-averse than men (in gambling, investments, mutual fund management, etc.). Why do you think this is? Can you think of any other examples of women being more risk-averse than men?
It has been observed in various regions of the world that the number of male investors for high risk venture are much more than female investors. A greater percentage of investors for risky ventures like gambling, investments, mutual fund management, equity, etc is comprised of men. On the other hand, low risk and medium risk investment like debentures. public deposits, etc fetch women population towards it.
The capacity of a person to take risk in financial investment depends on his income and wealth. People who have high earring capacity are willing to take more risk in investment for high returns.
The average earning of women in the world is comparatively low as compared to men. This evidence that majority of the women do not have the financial capacity to take high risk by investing in investments like mutual fund management, etc. Rather they prefer to invest in fixed deposits, debentures, etc. which involves low risk. Thus women are more risk-averse than men.