Guiso, Luigi; Sapienza, Paola; Zingales, Luigi - Center for Financial Studies - 2005
, D8
Keywords: Stock Market Participation, Trust, Portfolio Choice
The decision to invest in stocks requires not … only an assessment of the risk-return trade-off
given the existing data, but also an act of faith (trust) that the data in … distribution of expected payoffs, but the fundamental trust in the system that delivers those
payoffs. Most of us will not enter a …