Differences in risk aversion based on gender and different sizes of savings

The purpose of this thesis is to investigate whether females are more risk averse than men on the Swedish stock market and to determine if the level of risk aversion decreases or increases for individuals with a large amount of investments, defined as >1 MSEK. The datasets on which this thesis has used is collected from Avanza, a Swedish financial institution, and the time period that the data will be implemented from is 2019-02-15 to 2021-02-15. Carhart´s Four-Factor regression analysis is used to investigate how the investment behavior are differently between the women and men, the millionaires and non-millionaires. The result of this thesis show that women are more risk averse in comparison to men, which is consistent with what the theory predicts and the findings in most of the previous empirical studies. We also find that millionaires are more risk averse compared to non-millionaires because of their higher portfolio beta