31Dec 2014

Danger Can Never Be Overcome Without Taking Financial Risk Tolerance: Data Envelopment Analysis

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According to Warren Edward Buffett \"RISK COMES FROM NOT KNOWING WHAT YOU\'RE DOING.\" Portfolio is a financial term denoting a collection of investments held by an investment company, hedge fund, financial institution or individual. (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. In this paper the researchers wish to study the efficiency of portfolio investors in their financial risk tolerance using Data Envelopment Analysis.


[Dr. I FRANCIS GNANASEKAR, Dr. R ARUL (2014); Danger Can Never Be Overcome Without Taking Financial Risk Tolerance: Data Envelopment Analysis Int. J. of Adv. Res. 2 (12). 0] (ISSN 2320-5407). www.journalijar.com


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