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Gatland furious as a South African TMO is appointed for first Lions Test
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Warren Gatland furious with first Test s TMO appointment
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After a war of words, Lions and Boks can finally settle
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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