Do Women Differ in Their Investment Information Processing Style?

Men and women differ in their risk and investment styles. Women are more risk averse and prefer low risk fixed income investments. Psychologists suggest the reason for their different investing style is that women are more methodical in information processing strategy, which leads to increased perception of risk as compared to men. The article investigates whether gender differences exist in the preferences for risk and whether the reasons suggested by psychologists for women being more risk averse are valid.