Portfolio theory ; Household finance ; Asset allocation ; International diversi fi cation ; Heuristics
Abstract:
This paper evaluates numerous diversification strategies as a possible remedy against widespread costly investment mistakes of individual investors. Our results reveal that a very broad range of simple heuristic
allocation schemes offers similar diversifi
cation gains as well-established or recently developed portfolio optimization approaches. This holds true for both international diversi
fication in the stock market and diversification over different asset classes. We thus suggest easy-to-implement allocation guidelines for individual investors.
Dieser Eintrag ist Teil der Universitätsbibliographie.
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