Difference in the way investors construct their portfolios

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Reference no: EM13886034

Question: In this unit, you will read an article and write a 2 page papers.

Article:- Do Portfolio Distortions Re?ect Superior Information or Psychological Biases? (George M. Korniotis and Alok Kumar)

Korniotis and Kumar divide investors into two categories, smart and dumb, where their definitions of smart and dumb do not follow colloquial norms.

How do Korniotis and Kumar define smart and dumb and what is portfolio distortion?

Discuss the biases they discern in investor behavior and how they are related to the investor's knowledge and/or informational advantage.

Is there a difference in the way investors construct their portfolios?

A difference in the way their portfolios perform?

Based on what you read in their article and what you have learned in class, what would be your recommendation on how to construct and manage a portfolio?

Please no plagiarism, good vocabulary, correct phrases and good grammar.

Reference no: EM13886034

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