A joint study by the Finra Investor Education Foundation and Stanford IFDM suggests advanced investment literacy is defined largely by risk awareness and is associated with stronger financial outcomes.

The Finra Investor Education Foundation and the Stanford Initiative for Financial Decision-Making (IFDM) have published research examining how investment literacy, particularly understanding of risk, influences financial behaviour and outcomes among US investors.   The researchers found that advanced literacy is distinguished largely by an understanding of risk-related concepts The study, What Separates Sophisticated Investors? Risk Literacy and Investment Decision-Making , draws on dat