This audio lesson is on home country bias, which is the propensity of investors to have most of their portfolio exposure in their domestic stock and bond markets even if their home country comprises only a small percentage of the world’s capital markets.
For example, the Australian stock market comprises only 3% of the world’s equity market capitalization (i.e. its size relative to the rest of the world), but Australian investors have 74% of their stock portfolio allocated to Australian stocks.
The lesson explores reasons for this home country bias.
The episode length is 8 minutes.
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