excessive financial risk. Recent theory concludes that 10-15% of a worker's wealth portfolio can be prudently invested in … financial risk. We also find that families with employer stock are found to express more tolerance of financial risk, have … higher self-rated knowledge of personal finances, and are more likely to understand the value of diversification. While …

diversification against the benefits in terms of the standard deviation of the returns. Suppose a safety first investor cares about … downside risk and recognizes the heavytail feature of the asset return distributions. Then we show that optimal portfolio sizes …