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2015 | 63 | 6 | 599 – 616
Article title

NAÏVE INVESTMENT STRATEGIES IN COMPLEX FINANCIAL CHOICES

Content
Title variants
Languages of publication
EN
Abstracts
EN
This study analysed efficiency of heuristic strategies in complex financial choices. Some 200 naïve investors evaluated 15 financial products with eight attributes. Complex choices developed in two stages. The stage one employed non-compensatory strategies for reducing information burden, eliminating inadequate options and specifying a more narrow decision set. Attribute-based compensatory strategies are accounted for a significant majority of strategies in stage two. Naïve decision strategies worked relatively well. Average Sharpe ratios and product ranks were higher than random choices of financial products. The best results were delivered by the normative strategy, however, at the cost of a high information burden.
Contributors
  • Institute for Forecasting, Slovak Academy of Sciences, Šancová 56, 813 64 Bratislava, Slovak Republic, vbalaz@yahoo.com
References
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Publication order reference
Identifiers
YADDA identifier
bwmeta1.element.cejsh-bee1fb89-4f48-4a5e-8534-956588e0b919
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