The Effect of Investor Bias and Gender on Portfolio Performance and Risk

The International Journal of Business and Finance Research, v. 7 (1) pp. 1-16, 2013

16 Pages Posted: 29 Jan 2013

See all articles by Kevin Lee

Kevin Lee

California State University, Fresno

Scott Miller

Pepperdine University

Nicole Velasquez

Utah State University

Christi Wann

University of Tennessee, Chattanooga

Date Written: 2013

Abstract

We survey 84 finance and accounting majors to determine the behavioral factors that males and females exhibit when making investment decisions. The survey results are linked to student performance in the Stock-Trak Global Portfolio Trading Simulation. We find that males and females exhibit different behavioral biases and these behavioral biases can ultimately affect investment performance. We also find evidence to support previous research showing that males are more risk tolerant than females. However, our findings indicate that this behavior may be due to a difference in the perception of the actual risk being taken rather than an inherent desire to engage in more risky behavior.

Keywords: Behavioral Bias, Gender, Risk Aversion, Stock-Trak

JEL Classification: D03, G02, G14

Suggested Citation

Lee, Kevin and Miller, Scott and Velasquez, Nicole and Wann, Christi, The Effect of Investor Bias and Gender on Portfolio Performance and Risk (2013). The International Journal of Business and Finance Research, v. 7 (1) pp. 1-16, 2013. Available at SSRN: https://ssrn.com/abstract=2148664

Kevin Lee (Contact Author)

California State University, Fresno ( email )

5241 North Maple Avenue
Fresno, CA 93740
United States

Scott Miller

Pepperdine University ( email )

24255 Pacific Coast Highway
Malibu, CA 90263
United States

Nicole Velasquez

Utah State University ( email )

Logan, UT 84322
United States

Christi Wann

University of Tennessee, Chattanooga ( email )

Department of Philosophy & Religion (#2753)
Chattanooga, TN 37403-2598
United States

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