问一道题：NO.PZ2015111901000008

问题如下：

A student meets with Liu after one of his lectures. The student is participating in a mock investment competition that requires participants to create and manage a fictitious equity portfolio. Even though international equities are available as an invest­able asset class, the student elects to invest her entire portfolio in domestic equities.

Liu asks the student if she has ever considered including international equities in her competition portfolio given their diversification benefits and higher expected returns than domestic equities based on current consensus growth forecasts. The student responds that she has not considered international equities because she has not taken any courses in international investments that could provide her with expertise in this area. The student also indicates that she has the time and resources to research only domestic companies.

Determine whether bounded rationality has affected the student’s investment decision-making process. Justify your response.

选项：

解释：

Guideline answer:

● Bounded rationality describes the phenomenon whereby people gather some (but not all) available information.

● The student does not behave totally rationally because she is not gathering full information to identify international equity investment opportunities.

● Her decision meets the criterion specified of creating and managing a fictitious equity portfolio but is not necessarily optimal.

● Although higher returns may be possible in international equities, investing fully in domestic equities satisfices within the totality of the investor’s decision-making environment.

The notion of bounded rationality recognizes that people are not fully rational when making decisions and do not necessarily optimize but rather satisfice when arriving at their decisions. People have informational, intellectual, and computational limitations. Bounded rationality describes the phenomenon whereby people gather some (but not all) available information, use heuristics to make the process of analyzing the information tractable, and stop when they have arrived at a satisfactory, but not necessarily optimal, decision.

The student does not behave totally rationally because she is not gathering full information to identify possible international equity investment opportunities and doesn’t have the knowledge to do so. Her behavior is boundedly rational because her decision meets the criterion specified of creating and managing a fictitious equity portfolio but is not necessarily optimal. Although the decision is suboptimal, because higher returns may be possible in global markets, it satisfices within the totality of the student’s decision-making environment. The student may have decided that she lacked the knowledge, time, and resources to research all alternatives. Given the student’s apparently limited knowledge of international equities markets, and considering time constraints and the sole criterion of investing in equities, the decision to invest all of her portfolio in US equities may be reasonable.