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 |
|---|---|
| Pages (from-to) | 373-386 |
| Number of pages | 14 |
| Journal | Journal of Economic Behavior & Organization |
| Volume | 66 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 1 Jan 2008 |