IDEAS home Printed from https://ideas.repec.org/a/sae/globus/v23y2022i6p1481-1491.html
   My bibliography  Save this article

Does Risk Propensity of Investors Affect the Heuristic Choice of SRI Portfolio Selection?—A Comparison between a Market Portfolio and SRI Portfolio

Author

Listed:
  • Soma Panja

Abstract

From the last few years, awareness of socially responsible investments (SRI) investment is increasing in India. Study in SRI portfolio is gaining importance in finance research. To select an optimum portfolio (SRI or non-SRI), the investor should have basic knowledge about the weights. It is found that equal weight does not always give the desired result to the investors. An investor can also define the weight function heuristically based on their risk propensity to avoid the criticality in statistical calculation. The present article tries to get a heuristic optimum portfolio by comparing the SRI and non-SRI portfolios based on the risk-taking ability of the investors. Two types of investors are considered–optimistic and pessimistic. SENSEX and GREENEX are considered as non-SRI and SRI portfolios respectively. The main aim of the study is to see what type of investors get near optimum solutions if they go for SRI investment. After the analysis, it is found that the pessimistic investors’ decision is nearer to the optimum solution as compared to the optimistic investors’ decision if they go for SRI investment. So, it can be said that the pessimistic investors’ investment decision is better when compared to the optimistic investors in SRI investment.

Suggested Citation

  • Soma Panja, 2022. "Does Risk Propensity of Investors Affect the Heuristic Choice of SRI Portfolio Selection?—A Comparison between a Market Portfolio and SRI Portfolio," Global Business Review, International Management Institute, vol. 23(6), pages 1481-1491, December.
    • Handle: RePEc:sae:globus:v:23:y:2022:i:6:p:1481-1491
    DOI: 10.1177/09721509221120795
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09721509221120795
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09721509221120795?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:globus:v:23:y:2022:i:6:p:1481-1491. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.imi.edu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.