Investment strategies and related risk aversity of the Master of business administration (MBA) students at the University of KwaZulu-Natal (UKZN)

Abstract

It is an assumption that the investment decisions of the Master of Business Administration ("MBA") students are similar as the students have similar qualification and work experience. This study explores the extent of risk aversity in the investment strategies of students who are undertaking a dissertation for the requirement of a MBA degree at the University of KwaZulu-Natal ("UKZN"). In addition the empirical research identifies the factors that impinge upon their risk aversity to evaluate any differences or similarities between the male and female students in their attitude towards risk aversity. The research in essence probes these concerns by examining the objectives, expectations, preferences and constraints of the respondents using a quantitative survey method. The findings of the empirical research indicate that the respondents are indeed risk averse in their investment strategies. Some respondents have an attitude of being risk tolerant in certain circumstances and in questions of opposing scenarios their attitude was one of risk aversity. The results show that male and female respondents are similar in their investment strategies although the degree of risk aversity was found to be slightly higher amongst the females compared to the male respondents. The choice of stable investment vehicles, the expectation of earning consistent returns, the need to secure funds for future liability or to compensate for potential future risk, the constraints of income and job security and the need for long-term security were some of the factors influencing the extent of their risk aversity. The research findings point to the desirability of further research into the defined sample unit across other accredited MBA institutions in South Africa.