particular has identified some heuristics and cognitive distortions (such as the 1/N heuristic, home bias, mental accounting or …

-level internationalization and call into question whether investing in domestic stock indices actually leads to home bias. We use three measures … that investors who invest in their domestic market do not necessarily suffer from home bias. Instead, investing in domestic … stock indices more likely prevents investors from a home bias instead of entrapping them to insufficient portfolios …