Question

What are the risks and benefits of combining behavioural quantitative research, financial quantitative research and fieldwork such as surveys, questionnaires and case studies? In terms of a research program that identifies, measures and controls for financial risk, describe how you would design a research strategy that combines behavioural research, financial research and fieldwork. Describe the purpose of each procedure that you nominate, why it is needed and how it might be applied.

Answer 1

What is Behavioral Quantitative Research:

It refers to application scientific and mathematical tools to get data which is used in Measurement of extent of behavior of certain environmental factors or human behavior etc.

What is Financial Quantitative Research:

It refers to application of scientific and mathematical tools to conduct research on financial data. for example- Management of portfolio, Statistical Arbitrage etc.

What is Fieldwork:

It refers to a work which is conducted by analyst or researcher outside his office or laboratory. For Example- Survey, Questionnaires etc

Risk of combining behavioral quantitative research, financial quantitative research and fieldwork:

• One data may be inconsistent (Asymmetric data) to another which can brings research into wrong direction and creates unnecessary difficulties.
• There must be a correlation among the data which is going to be use and there exist a risk to find a correlation among different aspects.
• Sometimes, this type of numeric result may not be statistically relevant. Then, the result of research becomes useless.

Benefits of combining behavioral quantitative research, financial quantitative research and fieldwork:

• It boils all the aspects of a rigid or complex case study into the numbers which is very easy to analyze and discuss.
• Reliability increases Since, all the aspects of research are in symmetric manner.
• Benefit of parallel research can be available of one single factor under all the aspects.

Research Strategy that combines behavioral research, financial research and fieldwork:

Objective-

Since, we conduct Quantitative research hence, our objective is to ask specific and narrow questions to get Quantifiable data which can be analyzed using statistical and mathematical techniques.

One can use following type of research strategy:

• Experimental Strategy
• Quasi-Experimental Strategy
• Non-Experimental Strategy
• Correlation Strategy
• Descriptive Strategy

We may use correlation strategy for this, under which we conduct following steps:

• Create description of relationship among two individual variables.
• Then do cause and effect analysis
• Then get actual data from fieldwork i.e. questionnaires, case study etc.
• Do research to interpret that data.