Title

The Influence of University Financial Education on Asset Allocation

Document Type

Article

Publication Date

2008

Publication Title

Journal of Economics and Finance Education

Additional Publication URL

http://www.economics-finance.org

Abstract

Using survey data from students at three universities, we examine the influence of an Investments Analysis course on student perception of the ideal asset allocation for a retirement portfolio. Consistent with previous studies that examine financial education in the workplace, a critical outcome of university investment education is the apparent alleviation of a conservative bias that is typically prevalent among uninformed investors. This change results in an increasing willingness to take larger stock positions, which produces higher expected returns and larger portfolio betas. Most importantly, however, the net effect is more efficient portfolios, particularly for those students who begin with the most inefficient starting portfolios.

Rights

Link leads to full text provided by the Academy of Economics and Finance.