For loss averse investors, a sequence of risky investments looks less attractive if it is evaluated myopically — an effect called myopic loss aversion (MLA). The consequences of this effect have been confirmed in several experiments and its robustness is largely undisputed. The effect's...

Even though buy-and-hold (B&H) investment strategies can take into account the investor's risk tolerance by fixing a suitable stock proportion, the outcome profiles of B&H strategies are restricted to a certain class of distributions. For investors with specific risk preferences, further...