TY - JOUR
T1 - The effect of a high-risk stock fund on long-term investment
T2 - An experimental study
AU - Benzion, Uri
AU - Krupalnik, Lena
AU - Shavit, Tal
PY - 2013
Y1 - 2013
N2 - This article presents a multitrial experiment that extends the classic experiment of Thaler et al. [1997] by adding a high-risk stock fund to the bond and stock funds used in the original experiment. Results from the study show that investors allocate the same proportion of their investment to the high-risk stock fund and the stock fund, increasing their investment in the stocks and their expected return. We conducted a similar experiment with all three assets and found no myopic loss aversion. We suggest that high-risk stock funds might reduce the effect of myopic loss aversion.
AB - This article presents a multitrial experiment that extends the classic experiment of Thaler et al. [1997] by adding a high-risk stock fund to the bond and stock funds used in the original experiment. Results from the study show that investors allocate the same proportion of their investment to the high-risk stock fund and the stock fund, increasing their investment in the stocks and their expected return. We conducted a similar experiment with all three assets and found no myopic loss aversion. We suggest that high-risk stock funds might reduce the effect of myopic loss aversion.
KW - Multi-periods
KW - Myopic loss aversion
KW - Regret
UR - http://www.scopus.com/inward/record.url?scp=84878240504&partnerID=8YFLogxK
U2 - 10.1080/15427560.2013.760564
DO - 10.1080/15427560.2013.760564
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AN - SCOPUS:84878240504
SN - 1542-7560
VL - 14
SP - 53
EP - 64
JO - Journal of Behavioral Finance
JF - Journal of Behavioral Finance
IS - 1
ER -