Asset allocation decisions of individuals and institutions
By: Randolph B. Cohen
Contributors: Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 03-112; Working paper (Harvard Business School. Division of Research) -- 03-112
Publisher: Division of Research, Harvard Business School
Published: 2003
Place of publication: Boston]
Language: eng
Number of pages: 32
Description: We analyze the asset-allocation decisions of two stylized groups: individuals and institutions. Our results suggest that individuals reduce their percentage equity allocations more than institutions during the trough of the business cycle, when expected equity returns are high. Individuals purchase equities from institutions subsequent to positive and sell subsequent to negative equity returns. These results are consistent with countercyclical variation in the risk aversion of individuals.
Notes: "April, 2003"--Added t.p.

Includes bibliographical references.