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We provide a preference-based rationale for endogenous overconfidence. Horizon-dependent risk aversion, combined with a possibility to forget, can generate overconfidence and excessive risk taking in equilibrium. An "anxiety prone" agent, who is more risk-averse to imminent than to distant...
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This paper aims to explore the role of financial literacy, risk preference, and home bias in Minangkabau ethnic SME … developed to determine the impact of financial literacy, risk preference, and home bias on the financing decisions of SMEs. The … techniques with a sample of 623 SMEs. The results reveal that home bias and risk preference have a negative direct effect on …
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Für Investitionen am Kapitalmarkt spielt die Portfoliotheorie (Markowitz, 1952) eine bedeutende Rolle und bildet nach wie vor eine wichtige Entscheidungsgrundlage für die Strukturierung von Anlageportfolios. Für risikoaverse Anleger ist die Diversifikation der Portfoliobestandteile eine...
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