Behavioral Biases in Action

After laying out various biases in previous toolsets, we now look at how they effect people/firms.

  1. Strong and XU: Understanding Home country Bias

    Abstract: "This study uses survey data of fund managers' views on prospects for international equity markets to shed light on why investm...

  2. A rational explanation for home country bias

    Maybe it is not as much of a bias as we thought?? "While modern portfolio theory predicts that investors should diversify across inter...

  3. Home Bias is sometimes even closer to home

    Not just in your country, but in your neighborhood

  4. Multinational Finance

    maybe it is we measure benefits of diversification incorrectly? In bad times correlations increase.

  5. Excessive Extrapolation and the Allocation of 401(k) Accounts to Company Stock - Benartzi - 2002 - The Journal of Finance - Wiley Online Library

    investor/employees invest more in their own company's stock if the stock has done well in past. Alas, it stops doing well.

  6. CArhart on the persistance of Mutual Fund Performance

    The seminal article on hot hand persistance (or lack thereof)

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