Zion, Uri Ben; Erev, Ido; Haruvy, Ernan; Shavit, Tal - In: Journal of Economic Psychology 31 (2010) 6, pp. 985-995
In a given period, a diversified fund, by virtue of being a weighted average, will perform somewhere in the middle range of its components' respective performances. This means that adaptive investors who look to the past to adjust expectations about future returns will shun diversified funds....
