Abstract

There are many possible explanations for the financial behavior of investors. One of the explanations is financial knowledge. Using a survey data, this study demonstrates that, at least for investors, their objective knowledge, subjective knowledge, and risk taking are highly correlated. More importantly, gender emerges as an important factor that differentiates investors' levels of objective knowledge, subjective knowledge, and risk taking, whereas investors' subjective knowledge mediates investors' objective knowledge on risk taking.

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