Subjective Return Expectations, Perceptions, and Portfolio Choice
Hector Calvo-Pardo,
Xisco Oliver and
Luc Arrondel
Additional contact information
Hector Calvo-Pardo: University of Southampton
Authors registered in the RePEc Author Service: Hector Fernando Calvo Pardo
Post-Print from HAL
Abstract:
Exploiting a representative sample of the French population by age, wealth, and asset classes, we document novel facts about their expectations and perceptions of stock market returns. Both expectations and perceptions of returns are very dispersed, significantly lower than their data counterparts, and a substantial portion of the variation in the former is explained by dispersion in the latter. Consistent with portfolio choice models under incomplete information, a conditional risk-return trade-off explains the intensive margin, while at the extensive margin, only expected returns matter. Despite accounting for survey measurement error in subjective return expectations, 'muted sensitivities' at both portfolio choice margins obtain, getting consistently (i) bigger when excluding informed non-participants, and (ii) smaller, for inertial and professionally delegated portfolios.
Keywords: Subjective expectations; Perceptions; Portfolio choice; Household finance (search for similar items in EconPapers)
Date: 2022-01
References: Add references at CitEc
Citations: View citations in EconPapers (2)
Published in Journal of Risk and Financial Management, 2022, 15 (1), ⟨10.3390/jrfm15010006⟩
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Working Paper: Subjective Return Expectations, Perceptions, and Portfolio Choice (2022)
Journal Article: Subjective Return Expectations, Perceptions, and Portfolio Choice (2021) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-03672154
DOI: 10.3390/jrfm15010006
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().