Gorodnichenko, Yuriy; Yin, Xiao - 2024
We combine a customized survey and randomized controlled trial (RCT) to study the effect of higher-order beliefs on U ….S. retail investors' portfolio allocations. We find that investors' higher-order beliefs about stock market returns are … correlated with but distinct from their first-order beliefs. Furthermore, the differences between the two vary systematically …