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EX‐ANTE EXPECTATIONS AND PORTFOLIO SELECTION
Author(s) -
McInish Thomas H.,
Srivastav Rajendra K.
Publication year - 1984
Publication title -
financial review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.621
H-Index - 47
eISSN - 1540-6288
pISSN - 0732-8516
DOI - 10.1111/j.1540-6288.1984.tb01086.x
Subject(s) - pessimism , portfolio , financial economics , ex ante , economics , stock market , stock (firearms) , monetary economics , business , mechanical engineering , paleontology , philosophy , epistemology , horse , biology , engineering , macroeconomics
A bstract This paper examines differences among investors who are relatively optimistic/pessimistic regarding the performance of the stock market in terms of portfolio composition and trading activity. Findings indicate that investors more pessimistic regarding the stock market are likely to: (1) channel their funds into leveraged and tax advantageous investments, and (2) trade less frequently on the stock market.