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Overall, 72 subjects invest their endowment in four risky assets. Each com-bination of assets yields the same expected return and variance of returns. Illusion of expertise prevails when one prefers nevertheless the self-selected portfolio. After being randomly assigned to groups of four...
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This paper examines the relationship between overconfidence and losses from under-diversification among Dutch investors …. We find that a lack of proper portfolio diversification is positively associated with overconfidence. Part of this …. We proxy for overconfidence by exploiting the difference between measured and self-assessed financial literacy, and use …
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We study the relationship between overconfidence and the political and financial behavior of a nationally … representative sample. To do so, we introduce a new method of eliciting overconfidence that is simple to understand, quick to … price forecasting errors, and more extreme political views. Additionally, we find that overconfidence is correlated with …
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Chapter 1 investigates how people's beliefs and investment behavior change in light of social information from their peers and from experts with a large-scale online experiment with participants from the U.S. and the U.K. I find that laypeople’s forecasts are strongly influenced by information...
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