Matching risk attitude to investment behaviour: insights from self-reported responses

Using data from the 2004–2022 waves of the Italian Survey of Household Income and Wealth (SHIW), this paper evaluates the reliability of self-assessed financial risk attitude among investors by comparing it with their reported investment choices. The survey allows respondents to self-assess their risk tolerance, specify the types of investments they hold (categorised as more or less risky), and report the corresponding amounts. The consistency observed between stated risk attitude and the composition of reported portfolio holdings supports the reliability of the risk-aversion measure. The findings contribute to the ongoing methodological debate, providing evidence that self-reported measures are robust and reliable instruments for validating behaviour in financial markets.