Empirical studies of household portfolios have shown that young and relatively poor households hold under-diversified portfolios that are concentrated in a small number of assets, a fact often attributed to various behavioral biases. We present a model that offers a potential rational alternative: we show that relatively poor investors; i.e., investors with little financial wealth, who receive ...

the purpose of this research is to evaluate the ability of mutual funds investors to forecast the performance of mutual funds and selecting the best performed funds. it should be mentioned that both individual and institutional investors have been evaluated in this study. in order to answer the question whether the investors have the ability to forecast the performance of mutual funds or not, w...

The main objective of this research is to optimize the stock portfolio of investment companies operating in the field of petrochemical and refining industries through minimizing risk with respect to the expected return. In this regard, first of all, the compositions of sample firm's portfolios were investigated during 2013 to 2016 and high-weight industries were selected. Then, the risk of retu...

Order Flow Patterns around Seasoned Equity Offerings and their Implications for Stock Price Movements In this study, we employ order imbalance measures to provide evidence that there exists an individual/institutional dichotomy in reactions to seasoned equity offerings (SEOs). The evidence supports the notion that small, possibly näıve, individual investors keep trading SEO stocks aggressively ...

Empirical evidence indicates that trades by institutional investors have sizable effects on asset prices, generating phenomena such as index effects, asset-class effects and others. It is difficult to explain such phenomena within standard representative-agent asset pricing models. In this paper, we consider an economy populated by institutional investors alongside standard retail investors. In...