This study was designed to determine what variables would differentiate between levels of investor risk tolerance and classify individuals into risk tolerance categories. A model was developed and empirically tested using data from the 1992 Survey of Consumer Finances. Multiple discriminant analysis indicated that the educational level of respondents was the most significant differentiating and classifying factor. Gender, self-employment status, and income also were found to be effective in discriminating among levels of risk tolerance. Demographic characteristic provide only a starting point in accessing investor risk tolerance. More research is needed to explain variations in risk tolerance. Key Words: Demographics, Risk tolerance, Survey of Consumer Finances

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