“international portfolio diversification” and the “home bias” literature using asset holdings data from the IMF's “Coordinated …, Home Bias and High Turnover Reconsidered, Journal of International Money and Finance). Despite some shortcomings, the CPIS … international mean-variance model suggests that the optimal domestic portfolio share ranges between 10 to 30% for reasonable degrees …

increases in investors' risk aversion which in turn increases investors' proneness to familiarity bias. I hypothesize that … volatility is high. The average home bias and country concentration of investors' foreign holdings are of 8-10% larger during …

hindsight bias. This paper also derives a method which separates these two effects. The results show that the great majority of … the return differential for mainstream US equities has been due to hindsight bias, and very little due to bad investor …

It has been widely documented that investment decisions of individual investors exhibit local bias. Yet little is known … capital, and trust in particular, decreases the local bias of individual investors. Using the trading records of Chinese … retail investors, we find that investors with a higher level of trust exhibit less local bias in their stock investments, and …