one-line investor

"On-line investors are likeliy to become overconfident. They may believe that tehey have more ability to perform task such as stock picking than they actually do. Data provides encourage this belief with ads such as one that promises: "You will make more, because you know more". In theoretical models, overconfident individual investors trade more actively and more speculatively than they otherwise would, hold underdiversified portfolios, have lower expected utilities, and contribute to increased market
volatility" (Odean, 1998)




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