NBER

Adriana Z. Robertson

University of Toronto, Faculty of Law
78 Queen's Park
Toronto, ON, M5S 2C5

E-Mail: EmailAddress: hidden: you can email any NBER-related person as first underscore last at nber dot org
Institutional Affiliation: University of Toronto

NBER Working Papers and Publications

September 2018What Matters to Individual Investors? Evidence from the Horse’s Mouth
with James J. Choi: w25019
We survey a representative sample of U.S. individuals about how well leading academic theories describe their financial beliefs and decisions. We find substantial support for many factors hypothesized to affect portfolio equity share, particularly background risk, investment horizon, rare disasters, transactional factors, and fixed costs of stock market participation. Individuals tend to believe that past mutual fund performance is a good signal of stock-picking skill, actively managed funds do not suffer from diseconomies of scale, value stocks are safer and do not have higher expected returns, and high-momentum stocks are riskier and do have higher expected returns.

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