Risk Preference And Portfolio Selection Based On The Perspective Of Religious Belief

From ancient to modern times, religion has always been regarded as mysterious and people indulge in elaborating on. There are various types of religious in China: Confucianism, Buddhism and Taoism, the Christianity, Islam.2014 Pew Global Attitudes survey results showed that 33% of Chinese people think consider religion is very important(12%) or somewhat important(19%), religious affiliation accounted for 16%. Although the proportion is not high, but because of China’s huge population base, so the total number is huge. Religion plays an important role not only in China but the whole world. In this context, it is necessary to turn to the field of behavioral finance. Psychologists, anthropologists and sociologists have long regarded religion as a category of behavior that is not related to rational calculation. However, belief is indeed a kind of psychological activity, and the investors are rational, behavioral finance regard that the psychological activity of the rational investors plays a key role in the risk preference, investment decision and portfolio selection. Today, the behavior finance and religion economics have made great progress, it is meaningful to explore the relationship between the religious and people’s risk attitude and portfolio choice.This paper first analyzes the risk preference based on the perspective of religious belief and portfolio research background, demonstrate relevant literature review at China and abroad; Then this paper introduces a new concept of socially responsible investing in,then use it as a tie of research investor’s risk attitude and religious. With the organic combination of the two issues, we design and distribute the corresponding questionnaire and finally recycling effective 356 questionnaires. Then we use SPSS20.0 statistical analysis software to collect data to carry on the empirical analysis. In this paper, considering the wealth- capital budget constraints constructed on the basis of a contribution, which including financial assets investment, religious attendance, working time and daily consumption of inter-temporal indirect utility function, we adopt the dynamic planning of Hamilton-Jacobi-berman(HJB) equation solution under the multi period of utility maximization of optimization solution.At the end of the thesis,we present the main conclusions of research also points out the deficiency in the study and the future research direction.