'Noisy' errors by wealth managersfinancial advisers can be c

'Noisy' errors by wealth managersfinancial advisers can be caused by irrelevant factors says study


Opalesque Industry Update - A study with financial advisers to make recommendations for imaginary clients
found that risk tolerance assessments resulted in wildly different interpretations,
which had a massive impact on client recommendations.
In one instance, an adviser recommended a 'very low' level' of risk for an imaginary
client while another recommended a 'very high level'. For another, advisers were
evenly split between recommending low, medium, or high levels of risk.
The study, which was conducted by behavioural finance experts Oxford Risk, found
advisers gave 'remarkably different judgements' on how much investment risk was
suitable for clients with the same hypothetical information, and asset allocations

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