Episode 11 -What is psychometrics and why do we use it?

Psychometrics is a method for profiling an investor's attitude to risk, but how much do you know about it and why this method is used?

Dr. Alex Chase, Andre Neves Correia and Gillan Williams discuss the benefits and limitations of using tools from psychology in the advice process. The use of phsycometrics has become standard in the investor risk profiling industry, when used correctly can be a very useful way of comparing an investor's attitude to risk with others, enabling more-accurate comparisons between different investors.