However, the researchers discovered that the difference in annual net risk-adjusted returns earned by married men and women was only 1.2 percent. Never before reported, the study documents that men usually invest in smaller-value stocks that have higher market risks. As a result, the researchers adjusted net returns to accommodate for these risk factors. According to Odean, men's overconfidence in trading can be partially attributed to the fact that the number of men in the financial world far outweigh the number of women. Among a sample of one-third of the total accounts studied by the researchers, it was found that 47.8 percent of women reported having good investment experiences while 62.5 percent of men also reported having a favorable experience with investments.
Men simply do so more often.
Although the study explores the United States' financial world, the researchers noted the study's findings are not necessarily applicable to all countries across the globe. As a financial expert, Odean said he hopes people will become smarter investors as a result of the study's findings. Buy and hold investments for long horizons.