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If individuals derive a small utility from gambling, we should observe high turnover in stock portfolios that are of only marginal importance to them. By the use of detailed individual financial data, as weIl as trades from a Swedish online broker, we measure the frequency and cost of online...
Persistent link: https://www.econbiz.de/10004991065
hypothesis by correlating individual overconfidence scores with several measures of trading volume of individual investors … was designed to measure various facets of overconfidence (miscalibration, volatility estimates, better than average effect … mainly motivate this assumption by the calibration literature and model overconfidence as underestimation of the variance of …
Persistent link: https://www.econbiz.de/10005190926
transactions, and the probability to trade stocks in a given month) and are thus able to confirm predictions of overconfidence …
Persistent link: https://www.econbiz.de/10005651567