foreign equity investment. We find that diversification is not the only reason that investors trade foreign securities. While …

appears to be sub-optimal, partially due to commission costs and under-diversification of portfolios, which is magnified for …

In this paper, we examine if the diversification decisions of individual investors influence asset prices. First, we …' under-diversification and find that younger, low-income, and relatively less sophisticated investors hold less diversified …-confidence are less diversified. Finally, we show that the systematic under-diversification of individual investors influence asset …