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The recognition heuristic:a fast and frugal way to investment choice?

Publication |
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.