Information costs and portfolio selection

Rajendra K. Srivastava, Thomas H. McInish, Linda L Price

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

This paper examines the relationship between perceived information costs and expected returns, expected range of returns, ownership and sources of information for a group of affluent investors in a multi-market setting (across a variety of investments). Findings show that investors expect excess returns and greater risk in areas characterized by high information costs and that ownership is more limited (less diversified) in these investment areas. Additionally, the involvement of certain types of advisors (information sources) substantially increases information costs.

Original languageEnglish (US)
Pages (from-to)417-429
Number of pages13
JournalJournal of Banking and Finance
Volume8
Issue number3
DOIs
StatePublished - 1984
Externally publishedYes

Fingerprint

Information costs
Portfolio selection
Ownership
Investors
Information sources
Advisors
Sources of information
Expected returns
Excess returns

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

Cite this

Information costs and portfolio selection. / Srivastava, Rajendra K.; McInish, Thomas H.; Price, Linda L.

In: Journal of Banking and Finance, Vol. 8, No. 3, 1984, p. 417-429.

Research output: Contribution to journalArticle

Srivastava, Rajendra K. ; McInish, Thomas H. ; Price, Linda L. / Information costs and portfolio selection. In: Journal of Banking and Finance. 1984 ; Vol. 8, No. 3. pp. 417-429.
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