Yulia V. Veld?Merkoulova|Chris Veld
Stock return ignorance
Monash University|Monash University
optimal stock investment decisions rely assessments distribution expected returns using representative sample find half us population cannot answer simple questions expected stock returns respondents unable make return prediction cannot answer questions distribution expected returns reveal unlikely distributional beliefs participate less stock market smaller stock investments however overoptimistic investors likely participate stock market larger stock investments results persist controlling financial literacy intelligence education demographics people ignorant stock return distribution likely invest equities higher levels trust therefore trust substitute cognition factor positively associated individuals propensity invest