This paper examines the impact of demographic, socioeconomic and risk aversion factors on diversification in Australian household asset portfolios using Wave 6 of the HILDA Survey. Household assets are categorised as home and other property, superannuation, equity and cash investment, business...

Mixed-asset portfolio optimization consists in determining the best allocation among standard financial assets such as money market accounts, bonds, stocks and real estate asset as well. For this latter kind of asset, computing the optimal weight can be challenging. First, there is the need to...

Mutual funds hold 32% of the U.S. equity market and comprise 58% of retirement savings, yet retail investors consistently make poor choices when selecting funds. Theory suggests that poor choices are partially due to mutual fund managers creating unnecessarily complex disclosures and fee...

We examine the portfolio choices of 70,000 couples following a cancer diagnosis, including choices made in the event the diagnosed partner ends up dying. A matched sample of comparable couples is assembled using an approach that minimizes the likelihood that lifestyle factors differ between the...

How to incorporate hard-to-measure assets into the wealth tax? We analyze the effect of an optimal wealth tax on risk-taking behavior and welfare when investors do not only have the standard portfolio choice with a well-diversified market portfolio, but can alternatively choose to invest all...

We study the diversification properties of equity portfolios using data on all Norwegian households with equity investments. While households typically have undiversified equity portfolios, diversification is increasing in wealth

We investigate investment flows into more than 5,300 social trading portfolios that are issuedas structured products and are tradable at a regular exchange. We find that investment flowschase past performance. However, in contrast to mutual fund flows, the flow-performancerelation exists nearly...

Collectively organized pension plans must increasingly demonstrate that the risk preferences of their members are adequately reflected in the plans' asset allocations. However, whether funds should elicit individual members' risk preferences to achieve this goal, or whether they can rely on...

We analyze household stock market participation and allocation in a survey covering 19 European countries. We jointly control for all relevant variables from prior studies, which typically focus on one at a time, and omit risk-aversion. Excellent full model predictive power decomposes into...