Modern portfolio theory suggests that the best strategy to reduce portfolio risk is to diversify internationally rather than nationally. However, despite the gains from international portfolio diversification investors still overweight their portfolios with the domestic assets. This is referred...

Research suggests that informational differences, including familiarity with domestic securities, underlie home equity bias. We suggest that home bias can arise more subtly. The bias may simply occur because individuals are more comfortable with domestic companies, irrespective of information or...

Modern portfolio theory suggests that the best strategy to reduce portfolio risk is to diversify internationally rather than nationally. However, despite the gains from international portfolio diversification investors still overweight their portfolios with the domestic assets. This is referred...

Research suggests that informational differences, including familiarity with domestic securities, underlie home equity bias. We suggest that home bias can arise more subtly. The bias may simply occur because individuals are more comfortable with domestic companies, irrespective of information or...