ASU study says income influences bet hedging

ASU study says income influences bet hedging

Updated:

PHOENIX (AP) - A new study says a person's childhood economic status influences his or her investment strategies as an adult.

The study by Arizona State University researchers found that people from low-income backgrounds are more likely to diversify their financial strategies in the hopes that at least one option will work out. The study found diversification was the best strategy for people in unstable environments.

In contrast, people from wealthy backgrounds tend to concentrate their resources. For them, putting all their eggs in the same stable basket is the best approach.

Researchers say the findings show gut instincts are shaped by evolutionary logic.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Powered by WorldNow

KTBC FOX 7
119 East 10th Street
Austin, TX 78701

Phone: (512) 476-7777
Fax: (512) 495-7001

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices