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The Effect of Investor Bias and Gender on Portfolio Performance and Risk

Author

Listed:
  • Kevin Lee
  • Scott Miller
  • Nicole Velasquez
  • Christi Wann

Abstract

We survey 84 finance and accounting majors to determine the behavioral factors that males and females exhibit when making investment decisions. The survey results are linked to student performance in the Stock-Trak Global Portfolio Trading Simulation. We find that males and females exhibit different behavioral biases and these behavioral biases can ultimately affect investment performance. We also find evidence to support previous research showing that males are more risk tolerant than females. However, our findings indicate that this behavior may be due to a difference in the perception of the actual risk being taken rather than an inherent desire to engage in more risky behavior.

Suggested Citation

  • Kevin Lee & Scott Miller & Nicole Velasquez & Christi Wann, 2013. "The Effect of Investor Bias and Gender on Portfolio Performance and Risk," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 7(1), pages 1-16.
    • Handle: RePEc:ibf:ijbfre:v:7:y:2013:i:1:p:1-16
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    References listed on IDEAS

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    2. Mikelionytė Mintautė & Lezgovko Aleksandra, 2021. "Gender Impact on Personal Investment Strategies," Economics and Culture, Sciendo, vol. 18(1), pages 32-45, June.

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    More about this item

    Keywords

    Forecasting; agricultural economics;

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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