Purpose: This article deals with the retail investors' decision-making under risk, firstly addressing several theories of decision-making under risk. Following this theoretical framework, an analysis on investment strategies on the Croatian capital market has been conducted....

Investors' psychology, sentiment, attitude towards risk, degree of risk tolerance or aversion and other risk characteristics largely influence the investment decision which is empirically observed by Deck et al. (2008). Lashgari (2000), Dennis and Mayhew (2002), Suk and Tully (2003), and Wurgler...

Deriving an optimal asset allocation for institutional investors hinges crucially on the quality of inputs used in the optimization. If the mean vector and the covariance matrix are known with certainty, the classical mean-variance optimization of Markowitz (1952) produces optimal portfolios....