Q3 为什么选A呢， 文中说over time, Pak’s portfolio has higher allocation to in global securities, 为什么还是naive diversification呢。 五年了还一直守着equity fund 和 balance fund感觉选C才合理呀？求答
Arzac Wealth Management Services Case Scenario
Q. Which behavioral factor most likely impacted Pak’s decisions on how to construct his investment portfolio over time?
A Naive diversification
B Home bias
C Familiar investing
Solution
A is correct. Pak constructed his initial investment portfolio through the equal distribution of mutual funds, reflecting simple heuristics or a framing bias. This is an example of a naive diversification strategy (i.e., dividing assets equally among available funds irrespective of the underlying composition of the funds). The equal distribution may also reflect a fear of regret: Pak doesn’t understand which fund will outperform, so he decides to invest in all three equally.
B is incorrect because Pak has been increasing his exposure to global securities over time, as he wants to reduce risk by increasing his diversification by investing outside his home market. He does not have a home bias.
C is incorrect because Pak did not purchase an investment on the basis of familiarity but declined to purchase his employer’s stock because he felt the company was not performing to expectations.
