Goetzmann, William; Massa, Massimo; Simonov, Andrei - C.E.P.R. Discussion Papers - 2004
We study the puzzle of portfolio underdiversification and proximity investment from a novel perspective, linking it to the process of urbanization. We find that urban portfolios are more focused – i.e., less diversified and more concentrated in ‘close’ stocks. We explain it in terms of the...