Essay About Risk Profile Of The Employees And New Lucena City Government Complex

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AbstractThe study seeks to discover the risk profile of the employees from the New Lucena City Government Complex and its impact on their investment decision. The study covers City government employees using stratified random sampling method to obtain information from 92 respondents through a self-designed questionnaire constructed by the researchers which included questions based on the study that will focus on their risk profile and its impact on investment decision. The study was conducted by the researchers and used descriptive survey method to determine the risk profile of the respondents and assess their investment decision. Independent t-test, Analysis of variance (ANOVA) and Pearson Moment by using Simplified Statistics for Beginners (SSB) were employed. Through use of examining the frequency distribution tables and one-way ANOVA, background variables of city government employees were explored in an examination of how these variables affect their investment decisions. To further analyze the correlation among variables, this study implemented Pearson Product –moment Correlation Coefficient to determine the significant relationship between risk profile and investment decision. The study hypothesized that there is a significant difference on the risk profile of the respondents when grouped according to annual income. Therefore, the researchers conclude that high and average earning respondents have different perspective regarding how they invest and how they see risk. There is also significant relationship between risk profile and investment decision of the respondents. However, this study result concluded that other variables such as gender, age, sex, civil status, educational attainment appeared not to have significant differences. Most of the city government employees are afraid to take risk and see loss in their investment. The researchers concluded that most of them are conservative type for they have low risk tolerance, and easily react on market fluctuations, and it reflects on their investment decision where their investment strategy is for capital preservation and investing for low-risk securities.  Furthermore, the most important thing before going into investments is to know what is your goal in investing and how long you can afford not to touch your investments.