Date of Award

1996

Document Type

Thesis

Degree Name

Master of Business Administration

Department

Business

Abstract

This applied learning plan will focus on the area of developing individual's financial profile and correlating these attributes with investment means to compose an appropriate portfolio mix.

Research has indicated a growing trend for individuals to "do-it-themselves" and use discount brokers to save money. The use of discount brokerage's supports the notion that there is no financial advice, and the investor must do the research to make the proper decisions.

The problem for individuals "doing-it-themselves" is that they sacrifice the interpretation of the objectives and goals. The individual utilizing a discount broker may alleviate the ethical concern and may even save money, but the individual is forfeiting the sound financial advice and expertise research to make proper decisions.

The purpose of the applied learning method is to develop the individual's financial profile and correlate attributes with investment means. The portfolio mix is created based upon the attributes to maximize return and minimize risk for the individual. The individual attributes that are considered include the objective, duration, risk tolerance, liquidity, tax status, knowledge, and lifestyle. The applied learning method develops the objectives and attributes by quantifying answers regarding the individual's financial profile, nonfinancial information, and emotional acceptance. The method correlates these attributes with defined investment means based upon the investment pyramid. Once the individual attributes are correlated with the investment means, the investments are placed within a portfolio to minimize risk, maximize return, and achieve objectives.

There were three evaluators selected to evaluate the applied learning method. The evaluators were chosen for their years of experience, educational background in financial services, and expertise within financial planning. Questionnaires gathered data to perform statistical analysis for the applied learning plan. The evaluators choose a description that fit within each question, and the answer was assigned by a numerical response. The data was transformed into information utilizing data analysis, descriptive analysis, univariate analysis, and Chi-squared analysis.

Results of the analysis produces considerable evidence to suggest that the null hypothesis be accepted and to conclude that, within this sample pool, the applied learning plan develops the individual's financial profile and correlate individual attributes with investment means.

Included in

Business Commons

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