摘要：New European regulation on financial markets forces financial institutions to correctly measure their clients’ risk profiles before advising them on financial products. Our aim is to determine if there is a relation between financial knowledge and risk tolerance,since institutions may find it interesting to know why some investors are willing to bear higher risk. We gave a questionnaire to a group of students to measure the relationships between certain variables and to estimate the relationships among them using a bivariate probit. We find that although knowledge is relevant and affects risk tolerance,personal characteristics are the main factor on the investment dilemma.
