Financial risk tolerance using data envelopment analysis- A case study Dr. Gnanasekar I Francis*, Arul R** *Vice Principal, Associate Professor, PG and Research Department of Commerce, ST. Joseph's College (Autonomous), Tiruchirappalli, Tamilnadu, India **PH.D Research Scholar in Commerce, PG and Research Department of Commerce, ST. Joseph's College (Autonomous), Tiruchirappalli, Tamilnadu, India Online published on 8 April, 2014. Abstract According to Warren Edward Buffett “Risk is a part of God's game, alike for men and nations”. The term portfolio refers to any collection of financial assets such as stocks, bonds, and cash. Portfolios may be held by individual investors and/or managed by financial professionals, hedge funds, banks and other financial institutions. It is a generally accepted principle that a portfolio is designed according to the investor's risk tolerance, time frame and investment objectives. The monetary value of each asset may influence the risk/reward ratio of the portfolio and is referred to as the asset allocation of the portfolio. (Investopedia). Investors are of different types. There are conservative, moderately conservative, Moderate, Moderately aggressive and Aggressive. Moreover, investor's risk tolerance varies on the basis of age, sex, income, financial goals and so on. Data envelopment analysis (DEA) is a nonparametric method in operations research and economics for the estimation of production frontiers. It is used to empirically measure productive efficiency of decision making units (or DMUs). Non-parametric approaches have the benefit of not assuming a particular functional form/shape for the frontier; however they do not provide a general relationship (equation) relating output and input. (Aristovnik, A, 2012). TORA (Toolkit for Oracle) is a free software database development and administration available. It features a PL/SQL debugger, an SQL worksheet with syntax highlighting, a database browser and a comprehensive set of database browser and a comprehensive set of database administration tools (Steven Feuerstein, 2002). In addition to Oracle Database Support, for MySQL, Postgre SQL, and Teradata databases has been added since the initial launch. https://sourceforge.net/), (http://torasql.com/News). In this paper the researchers wish to a study Case Study on Financial Risk Tolerance Using Data Envelopment Analysis. Top Keywords Portfolio Investors, Risk tolerance, Data envelopment analysis. Top |