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Investor risk profiling attacked by academic.

Australasian Business Intelligence, September, 2006

Byline: Nick Bruining

Sep 10, 2006 (The West Australian - ABIX via COMTEX) -- A Macquarie University academic has expressed concerns about investor risk profiling questionnaires. Tom Valentine of the university's Graduate School of Risk Management says investors could be directed towards inappropriate investments as a result of the risk profiling used to determine an investor's tolerance to risk. Risk profiling measures an individual's investment experience and knowledge as well as their psychological patterns, and is often used by financial planners to determine an appropriate level of investment risk for a client. Valentine said risk profiling creates situations where money for short-term goals can be placed in long-term investments. The subjective nature...

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