Publication at Faculty of Social Sciences, Faculty of Mathematics and Physics, Centre for Economic Research and Graduate Education |
2008
Abstract
We report how stock portfolios that employed recognition heuristics fared relative to market indices, mutual funds, chance or "dartboard" portfolios, individual investment decisions, portfolios of unrecognized stocks and other benchmarks proposed by third parties. The surprising performance of recognition-based portfolios provides further evidence that simple heuristic can make accurate inferences about real-world domain.