ABSTRACT
One of the elements that should be considered in making an investment is risk. People have different levels of risk acceptance, which can be either risk taker, risk adverse, or risk avoidance. In general understanding, the risk will determine the return. The more risk investors are willing to face, the more returns they will get. Based on our reading from previous literature on risk appetite, there are three independent variables identified: the financial literacy, the amount of capital, and the behavioral belief that is related to dependent variables. Thus, this paper was conducted to discover the factors that contribute to the level of risk acceptance for each individual in investment. This study employed a set of questionnaires, 100 of which were answered, that were distributed to the young generation aged between 20 and 28 years old in Shah Alam, Selangor. The questionnaires encompassed a personal profile and questions related to the study variables. To conduct this study, PLS-SEM (PLS) path modeling was utilized to analyze the data. PLS allows the researchers to examine the relationship between the hard to measure latent variables. The results could provide a holistic insight into the nature of new investors, especially in terms of their risk appetite.
