|
|
|
|
||||
|
||||
Financial Literacy and Portfolio DiversificationMargarida AbreuISEG-UTL; Technical University of Lisbon (UTL) - Research Unit on Complexity and Economics (UECE); Instituto Superior de Economia e Gestão - CISEP Victor MendesCMVM - Comissao do Mercado de Valores Mobiliarios Quantitative Finance, Vol. 10, No. 5, pp. 515-528, 2010 Abstract: We use a survey of individual investors disclosed by the Portuguese securities commission (CMVM) in May 2005 to study the impact of investors’ levels of financial literacy on portfolio diversification. We consider distinct aspects of financial literacy, and control for socioeconomic and behavioral differences among individual groups of investors. Our results suggest that investors’ educational levels and their financial knowledge have a positive impact on investor diversification. The information sources used by retail investors to gather information on markets and financial products also have a significant impact on the number of different assets included in a portfolio.
Keywords: Educational Finance, Resource Allocation JEL Classification: G11, I20, G32, J24 Accepted Paper SeriesDate posted: April 14, 2011Suggested CitationContact Information
|
|
||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo6 in 0.359 seconds
