Purpose The purpose of this paper is to develop a prescriptive portfolio selection (PPS) model based on a compromise between the idea of “fast” and “slow” thinking proposed by Kahneman. Design/methodology/approach “Fast” thinking is effortless and comfortable for investors, while...

Purpose – The purpose of this paper is to present a multi-objective model to the optimum portfolio selection using genetic algorithm and analytic hierarchy process (AHP). Portfolio selection is a multi-objective decision-making problem in financial management. Design/methodology/approach –...

This paper explores the relationship between risk attitude and asset diversification in household portfolios. We first examine the impact of manifested risk aversion on the total number of distinct assets held in a portfolio (naive diversification). The second part of the paper focuses on a more...