Abstract
This paper jointly analyzes traditional and behavioral concepts in a simple experimental setting which allows for the assessment of the relative importance of each factor and their joint behavior. Various hypotheses are tested in three portfolio choice models. Markowitz [Markowitz, H., 1952. Portfolio selection. Journal of Finance 7, 77–92] findings are analyzed and extended by behavioral concepts and socio-demographic variables. Models are expressed as conjoint choice models represented by a multinomial logit model. Data is collected in an experimental setting. We show that the level of the risk-free rate, an individual's risk aversion, market sentiment, self-assessed financial expertise, age and gender are determining factors of portfolio choice.
Original language | English |
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Pages (from-to) | 373-386 |
Number of pages | 14 |
Journal | Journal of Economic Behavior & Organization |
Volume | 66 |
Issue number | 2 |
DOIs | |
Publication status | Published - May 2008 |
Externally published | Yes |
Keywords
- Investor behavior
- Market sentiment
- Portfolio choice
- Risk aversion