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This paper explores the relationship between self-declared risk aversion of private investors and their willingness to hold diversified portfolios of financial assets. The analysis is based on household survey data from the German Socioeconomic Panel (SOEP) that provides a reliable measure of...
Persistent link: https://www.econbiz.de/10011387313
This paper explores the stock holdings of Spanish households. As found for other developed countries, the major part of Spanish households does not participate in the stock market. We analyse the impact that entry costs can have in this decision by looking at how wealth, education and a series...
Persistent link: https://www.econbiz.de/10010223413
-shot or additive models.Solving for the optimal choice, we find an interaction between diversification and the time horizon an …
Persistent link: https://www.econbiz.de/10012955961
We study the diversification properties of equity portfolios using data on all Norwegian households with equity … investments. While households typically have undiversified equity portfolios, diversification is increasing in wealth …
Persistent link: https://www.econbiz.de/10012959326
We study the value added of automated financial management (AFM) services along two dimensions: diversification and …
Persistent link: https://www.econbiz.de/10012902640
diversification in some settings may be beneficial, in the case of assets with identical payouts, fee minimization is the only …
Persistent link: https://www.econbiz.de/10013005429
theory predicts a strong diversification motive.We argue that the proposed models justify this behavior, even in an …
Persistent link: https://www.econbiz.de/10013011529
portfolio diversification—NPD) or engage in naïve buying diversification (NBD)—equally balancing values in same-day purchases of …
Persistent link: https://www.econbiz.de/10012853589
diversification is scarce. In an online experimental study, we recruited 251 experienced US retail investors to select portfolios that … differ in asset correlation and risk measures in both the gain and the loss domain. Our findings unveil that diversification … diversification. In contrast, displaying individual stock outcomes results in more diversified portfolios in the loss compared to the …
Persistent link: https://www.econbiz.de/10013213747
We investigate the relationship between social interaction and household finances using data from the British Household Panel Survey. We contribute to the existing literature by exploring the relationship between a wide range of aspects of household finances and social interaction, rather than...
Persistent link: https://www.econbiz.de/10010380024