THE REALITY OF THE 100 MINUS AGE PHENOMENON: A TURKEY REVIEW

Abstract

One of the most important issues for investors in financial markets is the acceptable risk level. Although many theories have been developed in the literature for portfolio creation and risk level determination, it is not an easy task to determine the risk tolerance levels of individuals with a single theory for many reasons, especially individual differences. The most well-known of the theories based on the life cycle is the theory that the number obtained by subtracting the age of the investor from the whole number of 100 will show the number of risky assets that can be kept in the portfolio. As a result of this study, although it has been determined that age causes differentiation in terms of current portfolio value, the validity of the theory of 100 minus investor age has been questioned and no evidence supporting this theory has been found.