How Investors Face Financial Risk: Loss Aversion and Wealth Allocation
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چکیده
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منابع مشابه
Behavioral biases and portfolio choice
We investigate the way investors react to prior gains/losses. We use a new and unique dataset with detailed information on investors’ various components of wealth, income, demographic characteristics and portfolio holdings identified at the stock level. We test the theory of loss aversion against the alternative provided by standard utility theory and the house-money effect. We show that, on a ...
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