Asset Allocation

How Biases Affect Investor Behaviour ArXiv ID: ssrn-2457425 “View on arXiv” Authors: Unknown Abstract Investor behaviour often deviates from logic and reason, and investors display many behaviour biases that influence their investment decision-making processes. Keywords: Behavioral Finance, Investor Psychology, Decision Making Biases, Asset Allocation, Portfolio Management Complexity vs Empirical Score Math Complexity: 1.0/10 Empirical Rigor: 2.0/10 Quadrant: Philosophers Why: The paper is descriptive and conceptual, discussing psychological biases without mathematical formalism or empirical backtesting, focusing on behavioral finance theory rather than quant implementation. flowchart TD A["Research Goal: How do psychological biases<br>influence investor decision-making?"] --> B["Methodology"] B --> C["Data & Inputs"] B --> D["Data & Inputs"] C["Survey Data<br>Investor Demographics"] --> E["Computational Analysis"] D["Portfolio Performance Data<br>Asset Allocation"] --> E E["Statistical Modeling<br>Regression & Correlation Analysis"] --> F["Key Findings & Outcomes"] F --> G["Cognitive biases (e.g.,<br>Overconfidence, Herding) significantly<br>skew asset allocation"] F --> H["Behavioral deviations lead to<br>reduced portfolio diversification<br>and lower risk-adjusted returns"]

A Study of Saving and Investment Behaviour of Individual Households – An Empirical Evidence from Orissa ArXiv ID: ssrn-2168305 “View on arXiv” Authors: Unknown Abstract Investment is one of the foremost concerns of every individual investor as their small savings of today are to meet the expenses of tomorrow. Taking 200 respond Keywords: Retail Investing, Portfolio Construction, Savings Behavior, Asset Allocation, Multi-Asset Complexity vs Empirical Score Math Complexity: 2.0/10 Empirical Rigor: 5.5/10 Quadrant: Street Traders Why: The paper applies standard statistical tests (Chi-Square, ANOVA, Rank Correlation) with basic formulas but no advanced derivations, placing math complexity low. Its empirical rigor is moderate because it uses a structured questionnaire and primary data collection for backtest-like analysis of investor behavior, though it lacks high-frequency data or algorithmic implementation. flowchart TD A["Research Goal: Analyze saving & investment behavior<br>of households in Orissa"] --> B["Methodology: Empirical Analysis<br>Survey Data Collection"] B --> C["Data Inputs: 200 Households<br>Demographics, Income, Assets"] C --> D["Computational Process: Multi-Asset<br>Portfolio Analysis & Allocation"] D --> E["Key Outcomes: Specific patterns in<br>Savings Behavior & Retail Investing"]

Beyond Markowitz: A Comprehensive Wealth Allocation Framework for Individual Investors ArXiv ID: ssrn-925138 “View on arXiv” Authors: Unknown Abstract In sharp contrast to the recommendations of Modern Portfolio Theory (MPT), a vast majority of investors are not well diversified. This neglect of diversificatio Keywords: portfolio diversification, modern portfolio theory, asset allocation, investor behavior, risk management, Multi-Asset / Equities Complexity vs Empirical Score Math Complexity: 3.0/10 Empirical Rigor: 2.0/10 Quadrant: Philosophers Why: The paper proposes a conceptual framework extending Markowitz by adding personal and aspirational risk dimensions, relying on qualitative discussion and examples rather than dense mathematical derivations or rigorous backtesting. flowchart TD R["Research Goal: Why do investors fail to diversify despite MPT?"] --> M["Methodology: Qualitative Analysis of Investor Behavior"] M --> D["Data Inputs: Empirical Data & Behavioral Observations"] D --> C["Computational Process: Multi-Asset Portfolio Simulation"] C --> F["Key Findings: Investors prioritize simplicity and familiarity over theoretical optimal allocation"] F --> O["Outcome: Proposed Comprehensive Wealth Allocation Framework"]