Christoph Merkle|Martin Weber
Do investors put their money where their mouth is? Stock market expectations and investing behavior
University of Mannheim|University of Mannheim
understand real investors use beliefs preferences investing decisions examine panel survey selfdirected online investors uk bank survey asks return expectations risk expectations risk tolerance investors threemonth intervals 2008 2010 combine survey data investors actual trading data portfolio holdings find investor beliefs little predictive power immediate trading behavior exception positive effect increases return expectation buying activity portfolio risk levels changes systematically related return risk expectations line financial theory risk taking increases return expectations decreases risk expectations response expectations investors also adjust riskiness assets trade