This paper explores the relationship between risk attitude and asset diversification in household portfolios. We first … diversification). The second part of the paper focuses on a more sophisticated strategy of diversification and asks whether financial … theory is compatible with observed diversification patterns. Based on the German Socioeconomic Panel which provides unique …

of college students. Results suggest that financial literacy can slightly attenuate the naïve diversification bias and …

from dependent risk factors. Moreover, we examine the diversification effects under this setup …

diversification across large shareholders. Exploiting this heterogeneity, we document that firms controlled by diversified large … shareholder diversification on corporate risk-taking is both economically and statistically significant. Our results have …

diversification behavior. This issue is relevant in that investors are increasingly in charge of their own financial security, but … diversification: what they do is to split equally their wealth among the asset classes available, in a naïve way. We try to detect if … willing to take. Moreover, only those who are literate in terms of diversification select less risky portfolios; the others …

diversification into VIX futures is ex-ante optimal for standard mean-variance investors, then extend this to include skewness … study shows that skewness preference increases the frequency of diversification, but out-of-sample the optimally …

This paper investigates the potential benefits of international diversification with short-selling constraints from the …-sample test also demonstrates that international diversification can greatly enhance the expected portfolio returns as well as the … that international portfolios need to be rebalanced frequently in order to generate the greatest possible diversification …

diversification, and holdings of an employer's stock. We find that each of these variables is correlated with sophistication, with …

This paper aims to empirically verify whether an individual European investor can enhance the diversification of his … the long term risk-return profile of a conventional asset allocation. The diversification benefits are realizable even …