Equity Portfolio Diversification

By Will Goetzmann, Alok Kumar. 2001

1,189 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/fff02af2c4d6acc0a0098091a11db047a935407d

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Citations in the corpus

Financial literacy, financial advice, and financial behavior (2017, background): “…in equity portfolios (Goetzmann and Kumar 2008; Grinblatt and Keloharju 2001), prior investment experience (Goetzmann and Kumar 2008; Nicolosi et al. 2009; Seru et al. 2010), and the propensity to invest in complex financial instruments (Genesove and Mayer 2001; Goetzmann and Kumar 2008).”
Information, overconfidence and trading: Do the sources of information matter? (2012, neutral): “Investor behavior may vary according to age (DaSilva & Giannikos, 2004), occupation (Christiansen, Joensenand, & Rangvid,, 2008) or the environment in which they live (Goetzmann & Kumar, 2008).”
How Does Household Portfolio Diversification Vary with Financial Literacy and Financial Advice (2011, neutral): “Panel A of Figure 3 does this for the pure stock portfolios and reveals a picture of strong underdiversification, which is similar to the findings of Calvet et al. (2007) for Sweden and Goetzmann and Kumar (2008) for the U.S..”
Psychology-based Models of Asset Prices and Trading Volume (2018, background): “Ambiguity aversion has also been used to think about the under-diversification in many household portfolios (Goetzmann and Kumar, 2008).”
Is Unbiased Financial Advice to Retail Investors Sufficient? Answers from a Large Field Study (2012, methodology): “This underdiversification is typically not linked to investment skill (Goetzmann and Kumar 2008). If a portfolio optimizer improves diversification, it will consequently add value for a typical retail investor. It is relatively unimportant which optimization method is applied, as long as it increase”
IQ, Trading Behavior, and Performance (2012, neutral): “Goetzmann and Kumar (2008) find that under-diversification is more prevalent among “less-sophisticated” investors.”
Presidential Address: The Cost of Active Investing (2008, background): “(See, for example, Barber and Odean (2000), or Goetzmann and Kumar (2008).)”
Behavioral Biases of Mutual Fund Investors (2011, neutral): “7 For example, an informed investor may optimally focus on only a few stocks (Goetzmann and Kumar (2008), Ivkovich, Sialm, and Weisbenner (2008), Van Nieuweburgh and Veldkamp (2010)). broker.8 The database has been used by a number of other authors including Odean (1998) and Barber and Odean (2000).”
Measuring the Financial Sophistication of Households (2009, neutral): “Richer, better educated households tend to be better diversi ed (Blume and Friend, 1975; CCS, 2007; Goetzmann and Kumar, 2008; Vissing-Jorgensen, 2003), display less inertia (Agnew, Balduzzi, and Sundén, 2003; Bilias, Georgarakos and Haliassos, 2008; Campbell, 2006; CCS, 2009; Vissing-Jorgensen,…”
Who Are the Value and Growth Investors (2017, neutral): “A recent literature suggests that the demand for positively-skewed “lottery” stocks could explain the under-diversification of household portfolios (Goetzmann and Kumar 2008, Kumar 2009b, Mitton and Vorkink 2007, Polkovnichenko 2005). While lottery stocks tend to be small and young growth stocks, it”
Keynes Meets Markowitz: The Tradeoff Between Familiarity and Diversification (2009, neutral): “Barber and Odean (2000) and Goetzman and Kumar (2008) report similar findings of under-diversification based on data for individual investors at a U.S. brokerage.”
Does Risk-Neutral Skewness Predict the Cross-Section of Equity Option Portfolio Returns? (2013, background): “Most related to this paper is the work of Goyal and Saretto (2009), who form volatility assets (straddles and delta-hedged calls) and find a positive relation between volatility returns and the difference between historical realized volatility and implied volatility (HV-IV).”
Portfolio Concentration and the Performance of Individual Investors (2008, neutral): “Goetzmann and Kumar (2008) show that individual investors not only hold a small number of stocks directly, but that the stocks that they do hold tend to be fairly highly correlated.”