Barasinska, Nataliya; Schaefer, Dorothea; Stephan, Andreas - 2009
This paper explores the relationship between risk attitude and asset diversification in household portfolios. We first … theory is compatible with observed diversification patterns. Based on the German Socioeconomic Panel which provides unique … socioeconomic characteristics, the propensity for taking investment risk is an important predictor of a household's diversification …