A study conducted by England's Financial Services Authority (FSA) in 2004 called "Consumer Understanding Of Financial Risk" has shed some light on how well people understand their investments. Such understanding or, in some cases, the lack of understanding, leads to specific types of behavior. It is important for both investors and providers to be aware of the differences. In this article, we'll go over this study and what it can teach investors about their own understanding of their personal finances.
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