Companies and academics rarely account for balancing the risk and reward in a customer portfolio of a firm. Unlike a stock portfolio where both measures are taken into account, many people tend to look only at the customers' average profit value. Applying financial portfolio management...

Researchers and the investment community continually debate whether consumers have the requisite acumen regarding financial instruments. We find that consumers have intuitive knowledge about uncertainty, and they intend to alleviate that uncertainty through a relatively sophisticated financial...