Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
960996 | Journal of Financial Markets | 2014 | 24 Pages |
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 diversification gains as well-established or recently developed portfolio optimization approaches. This holds true for both international diversification in the stock market and diversification over different asset classes. We thus suggest easy-to-implement allocation guidelines for individual investors.
Keywords
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Heiko Jacobs, Sebastian Müller, Martin Weber,