Art der Publikation: Beitrag in Zeitschrift

How should individual investors diversify? An empirical evaluation of alternative asset allocation policies

Autor(en):

Jacobs, Heiko; Müller, Sebastian; Weber, Martin

Titel der Zeitschrift:

Journal of Financial Markets

Jahrgang (Veröffentlichung):

2014 (2014)

Heftnummer:

19

Seiten:

62-85

Schlagworte:

Portfolio theory Household finance Asset allocation International diversification Heuristics

Digital Object Identifier (DOI):

doi:10.1016/j.finmar.2013.07.004

Link zum Volltext:

https://www.sciencedirect.com/science/article/pii/S1386418113000451

Zitation:

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Kurzfassung

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.