Weather and mood make financial advice appear almost “totally random” May 25, 2021 By Funds Europe
Behavioural finance experts have found financial advisers can give “remarkably different” advice from each other to the same clients based on factors including sleep or how long since the adviser last ate.
Oxford Risk studied 200 financial advisers giving advice to imaginary clients with the same information and said subsequent asset allocations were “scattershot”.
The implications for clients’ portfolios was “massive”, with on one occasion an imaginary client bracketed as high or low risk depending on the adviser.
Researchers said “noise” was a key factor in advice and was caused by irrelevant factors such as an adviser’s current mood, the time since their last meal, or the weather.
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
Jayawickrama, Mendis put Sri Lanka in command Daily News (via HT Media Ltd.)
Sri Lanka moved closer to winning the second and final Test after dominating the fourth day against Bangladesh at the Pallekele Stadium in Kandy yesterday.
The visitors were struggling at 177 for five in their second innings when bad light ended play early while chasing a massive victory target of 437 runs.
Bangladesh will resume today’s fifth and final day still needing 260 runs to win the match from 98 overs while Sri Lanka require five wickets to clinch the two-Test series 1-0.
The Sri Lankan spinners once again did the damage and they were all over the Bangladesh top order with Ramesh Mendis and debutant Praveen Jayawickrama sharing all five wickets.
DRS is not there to take a chance: Dhoni
By IANS |
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MS Dhoni, captain of Chennai Superkings Image Source: IANS News
Mumbai, April 16 : Chennai Super Kings skipper MS Dhoni offered a brief lesson on how to use Decision Review System (DRS) that might come in handy for those struggling to use it well like the current Indian team.
Dhoni, who has been known to be spot on with DRS, opted to not take a review against Punjab Kings batsman Shahrukh Khan after he was hit on the pads by a Deepak Chahar delivery on the very first ball he faced. The umpire had ruled him not out and it seemed from the replays that Dhoni s decision to not take a review was right.