The Impact of Risk-Appetite on Choosing Investment Portfolio
https://doi.org/10.21686/2413-2829-2026-2-187-195
Abstract
When studying the impact of economic cycle stage, including crisis, on management of investment portfolio it is necessary apart from portfolio profitability to take into account the maximum rate of possible losses, which the investor is ready to work with, i.e. risk-appetite as a separate factor influencing the choice of investment strategy. Moreover, a serious matter in managing investment portfolio is identification of time before the change of economic cycle stage, when it is necessary to re-orient the investment portfolio. According to the author, there is a time lag that correlates with economic cycle stage and possesses certain time duration between re-orientation of investment portfolio and change of economic cycle stage to achieve the optimum investment portfolio, in view of risks and profitability for investor. Due to the fact that each investor has got their own rate of risk-appetite, the optimum re-orientation of portfolio with regard to the time lag shall be discussed with individual rate of risk-appetite. The article provides today’s definition of risk-appetite and analyzes investor behavior in view of risk-appetite rate in different stages of economic cycle. In the research the author used methods of logical, dialectical and statistical analyses and conducted a review of relevant literature and information sources.
About the Author
D. G. Ivanov
International Banking Institute
named after Anatoliy Sobchak
Russian Federation
Russian Federation
Daniil G. Ivanov - Post-Graduate Student of the Department of Economics, Management and Entrepreneurship
60 Nevsky Avenue, Saint Petersburg, 191023, Russian Federation
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Review
For citations:
Ivanov D.G. The Impact of Risk-Appetite on Choosing Investment Portfolio. Vestnik of the Plekhanov Russian University of Economics. 2026;(2):187-195. (In Russ.) https://doi.org/10.21686/2413-2829-2026-2-187-195
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