TY - JOUR
T1 - Information costs and portfolio selection
AU - Srivastava, Rajendra K.
AU - McInish, Thomas H.
AU - Price, Linda L.
N1 - Funding Information:
*This research was supported, in part, by the Institute for Constructive Capitalism, the University of Texas at Austin.
PY - 1984/9
Y1 - 1984/9
N2 - 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.
AB - 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.
UR - http://www.scopus.com/inward/record.url?scp=0009211413&partnerID=8YFLogxK
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U2 - 10.1016/S0378-4266(84)80061-8
DO - 10.1016/S0378-4266(84)80061-8
M3 - Article
AN - SCOPUS:0009211413
VL - 8
SP - 417
EP - 429
JO - Journal of Banking and Finance
JF - Journal of Banking and Finance
SN - 0378-4266
IS - 3
ER -