The Bond-Stock Mix: A New Insight

28 Pages Posted: 18 Jan 2010 Last revised: 9 Oct 2010

See all articles by Sami Attaoui

Sami Attaoui

NEOMA Business School

Pierre Six

Neoma Business School

Multiple version iconThere are 2 versions of this paper

Date Written: September 9, 2010

Abstract

This paper studies the impact of consumption on the bond-stock mix. Contrary to the existing literature, we allow for an investor who is more risk averse towards consumption than towards wealth. We obtain patterns for the demands for stocks and bonds in terms of investor’s horizon and wealth, which can only be explained by the specific role that consumption plays in investor’s objective.

Keywords: Bond-stock mix, consumption, risk aversion, investment horizon, wealth

JEL Classification: G13

Suggested Citation

Attaoui, Sami and Six, Pierre, The Bond-Stock Mix: A New Insight (September 9, 2010). Available at SSRN: https://ssrn.com/abstract=1537039 or http://dx.doi.org/10.2139/ssrn.1537039

Sami Attaoui

NEOMA Business School ( email )

Boulevard André Siegfried - BP 215
Mont Saint Aignan, 76825
France

Pierre Six (Contact Author)

Neoma Business School ( email )

1, rue du Maréchal Juin - BP 188
Mont Saint Aignan Cedex, Normandy 76825
France

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