Tag Archives: risk tolerance

‘A better path’ toward projecting, planning for rising seas on a warmer Earth

More useful projections of sea level are possible despite substantial uncertainty about the future behavior of massive ice sheets, according to Princeton University researchers.

In two recent papers in the journals Nature Climate Change and the Proceedings of the National Academy of Sciences (PNAS), the researchers present a probabilistic assessment of the Antarctic contribution to 21st-century sea-level change. Their methodology folds observed changes and models of different complexity into unified projections that can be updated with new information. This approach provides a consistent means to integrate the potential contribution of both continental ice sheets — Greenland and Antarctica — into sea-level rise projections. (more…)

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Investment Risk Tolerance Affected by Age, Economic Climate, MU Study Shows

COLUMBIA, Mo. – As the U.S. economy continues to lag, many investors remain wary about taking risks with the stock market. Now, researchers at the University of Missouri have concluded that this attitude toward investment risk-taking is influenced by the age of the investor and the economic climate of the time period. Rui Yao, an assistant professor of personal financial planning in the College of Human Environmental Sciences at MU, found that willingness to take financial risks, or “risk tolerance,” decreases as investors age.

“Age has a pragmatic relationship with financial risk,” Yao said. “Each additional year of life represents a shortened time horizon for recouping market losses. In addition, individuals approaching or in retirement may shift focus from asset accumulation to asset preservation. These individuals may become relatively more concerned about potential loss of money when they are closer to retirement or no longer have a steady source of income.” (more…)

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