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| Brent J. Davis |
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| ''Does financial well-being affect portfolio construction? Evidence from an online survey'' |
| ( 2018, Vol. 38 No.1 ) |
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| Portfolio construction has emerged as an important topic as retirement programs are increasingly composed of defined contribution plans. Little research has investigated how an individual´s current financial well-being affects portfolio construction. Using two measures of financial well-being, I examine how individuals create hypothetical retirement portfolios using responses from an online survey. Individuals who are better able to cope with a financial emergency allocate a higher percentage to equities and less to money market funds when controlling for risk preferences and demographics. |
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| Keywords: Portfolio Choice, Financial Well-Being, Behavioral Finance, Personal Finance |
JEL:
D1 - Household Behavior: General |
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| Manuscript Received : Feb 05 2018 | | Manuscript Accepted : Feb 27 2018 |
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