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With the importance of behavioral perspective, various irrational variables were begun to include in financial analyses. Previous studies determine that related variables are effective in either individual or institutional investors –accepted as rational- decision making process. This study investigates whether investment choices of investors differentiate according to variables as personality, financial literacy level and risk perception. In this framework, discriminant analysis was run and it was determined that investment choices differentiate by risk perception and financial literacy level. Furthermore, we found evidence that risk perception can be explained by personality and advanced financial literacy. It has also found that investment choices differentiated by demographics as gender and education level. Simple and advanced financial literacy and risk perception are distinctive criterion on investment choices of individuals. However, there was no evidence regard to investment choices differentiates by marital status and age.Effective factors on risk perception of individuals were questioned with similar variables. It has also found that advanced financial literacy and personality are important factors on development of risk perception.
Canikli et al. (Mon,) studied this question.