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forecasts is found to be correlated with indicators of bias in a manner consistent with investors discounting optimistic …
Persistent link: https://www.econbiz.de/10012862149
High sentiment predicts low market returns and high arbitrage returns. This empirical evidence has important implications for portfolio optimization. Exploiting the eigenvalue-decomposition of the mean-variance portfolio, I show that its performance is the sum of two components: a market...
Persistent link: https://www.econbiz.de/10012839917
Purpose: This article analyzes the influence of familiarity bias on respondents' decision-making process, using results … of those managing unfamiliar assets. Originality: Several academic studies have examined familiarity bias, the …
Persistent link: https://www.econbiz.de/10012612666
development and familiarity (language and distance) are considered key determinants for home bias. The literature neglects however … for this misclassification. First, we find substantially smaller home bias estimates compared to those in the literature …. Second, the explanatory power of plausible home bias determinants is lower than previously documented. Third, familiarity …
Persistent link: https://www.econbiz.de/10014526644
Analyzing over 15 years of account-level trading records from Finland, we show that option features-expiration, moneyness, and the strike price-influence the behavior of retail investors and exacerbate their behavioral biases. Retail investors selectively exploit the expiration feature of...
Persistent link: https://www.econbiz.de/10014541850
The market is comprised of investors with a broad range of expertise. As a result, investors may make decisions differently from one another. Research reveals that investors use name-based heuristics, or short-cuts, including alphabetical ordering (Itzkowitz, Itzkowitz, and Rothbort 2015), name...
Persistent link: https://www.econbiz.de/10013019218
We propose a novel methodology to characterize the investor decision making process. By drawing logical paths in a …
Persistent link: https://www.econbiz.de/10013026184
Investor behavior in the investment decision making is something dynamic, since the behavior is influenced by the … preposition that can be used to describe, predict and explain the investor behavior in the stock decision making in capital market … decision making to invest in capital market is firstly required. There is three theories to explain the investor behavior in …
Persistent link: https://www.econbiz.de/10012936794
between the variables gender, age, degree and professional experience with the type of decision made. Findings The results … investment decision-making. This study is unique in examining the decoy effect in investment decisions in the Brazilian context. …
Persistent link: https://www.econbiz.de/10014506793
The strategic asset allocation is the most important decision an investor undertakes. An adequate foundation requires a … decision. But the discussion of the various decision parameters clearly shows that any allocation decision uses a substantial …Die strategische Asset Allokation ist die für den langfristigen Anlageerfolg wichtigste Entscheidung eines …
Persistent link: https://www.econbiz.de/10010513705