This paper uses a large individual-level data set to isolate the effects of risk tolerance on
portfolio composition. We test and confirm two predictions of the Capital Asset Pricing Model: (1) …

We examine returns and ending wealth in portfolios selected from 1,000 large US stocks
over a 20‐year holding period. Shortfall risk, the possibility of ending wealth being below a …

Time diversification is the idea that the risk of meeting an investment objective can be reduced
if risky portfolios with high expected returns are held over long periods of time. Observed …

We find evidence of a pronounced threshold-type asymmetry in the relation between stock
returns and real economic activity. Negative stock returns are followed by sharp decreases in …

The Dow Dividend Strategy recommends the highest-yielding stocks from the 30 Dow
Industrials. These stocks have come to be known as the “Dogs of the Dow” since they often …

This study investigates the existence of psychological barriers in the Dow Jones Industrial
Average, the S&P 500, and six foreign stock indices. It is believed by many in the investment …

This study uses a proprietary survey of Canadians to examine factors that lead people to seek
professional financial planning help. The main hypothesis is that financial self-efficacy will …

This paper documents a long‐lived asymmetrical relationship between interest rate changes
and subsequent stock returns. Drops in interest rates are followed by twelve months of …

We study the factors affecting the cross section of net returns of money market mutual funds
from 1990 through 1994, and the persistence of relative returns across years. We find that …

Finance textbooks typically state that 8 to 20 stocks can provide adequate diversification for
a portfolio. However, these recommendations usually assume a short time horizon such as …