The influence of different investment horizons on risk behavior

Siebenmorgen, Niklas ; Weber, Martin

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URN: urn:nbn:de:bsz:180-madoc-2820
Document Type: Working paper
Year of publication: 2002
The title of a journal, publication series: None
Publication language: English
Institution: Business School > Sonstige - Fakultät für Betriebswirtschaftslehre
MADOC publication series: Lehrstuhl für ABWL, Finanzwirtschaft, insb. Bankbetriebslehre (Weber) > Publications
Subject: 330 Economics
Subject headings (SWD): Risikoverhalten
Abstract: For a long investment period investment consultants usually recommend a larger proportion of risky assets in investors’ portfolios than for a short investment horizon. In an experiment we examine the effect of different investment horizons on investors’ risk behavior. We are interested both in the participants’ risk perception and in their asset allocation behavior. We find significant underestimations of long-term risks that lead to a higher proportion of risky assets in the long-term portfolios. Our data show, that the belief in mean reversion is a potential explanation for this behavior.
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Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.

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