We propose an international asset allocation model to investigate whether home currency concern has impacts on home bias puzzle. Domestic investors choosing their international portfolios depend on home currency premium and thus will behave in home bias scenarios. Besides, the optimal portfolio...

A portfolio choice model is provided to illustrate the disposition effect under irrational belief in mean reversion assumption. Higher cognitive reference, stronger irrational belief in mean reversion magnitude and less risk aversion all strengthen the disposition effect in the model. The...