Arbeitspapier
Financial risk aversion and household asset diversification
This paper explores the relationship between risk attitude and asset diversification in household portfolios. We first examine the impact of manifested risk aversion on the total number of distinct assets held in a portfolio (naive diversification). The second part of the paper focuses on a more sophisticated strategy of diversification and asks whether financial theory is compatible with observed diversification patterns. Based on the German Socioeconomic Panel which provides unique measures of individual propensity for taking risk, the results of the regression analysis show that, along with some socioeconomic characteristics, the propensity for taking investment risk is an important predictor of a household's diversification strategy. However, some of our findings are strongly at odds with what the concept of mean-variance utility suggests.
- Sprache
-
Englisch
- Erschienen in
-
Series: SOEPpapers on Multidisciplinary Panel Data Research ; No. 117
- Klassifikation
-
Wirtschaft
Household Saving; Personal Finance
Portfolio Choice; Investment Decisions
- Thema
-
Household finances
diversification
financial portfolio
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Barasinska, Nataliya
Schäfer, Dorothea
Stephan, Andreas
- Ereignis
-
Veröffentlichung
- (wer)
-
Deutsches Institut für Wirtschaftsforschung (DIW)
- (wo)
-
Berlin
- (wann)
-
2008
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Barasinska, Nataliya
- Schäfer, Dorothea
- Stephan, Andreas
- Deutsches Institut für Wirtschaftsforschung (DIW)
Entstanden
- 2008
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