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|Title||Investment Mistakes Drivers of Private Banking Clients|
|Institution||University of Zurich|
|Faculty||Faculty of Business, Economics and Informatics|
|Number of Pages||45|
|Abstract Text||I use a unique dataset from an international Swiss private bank comprising transac-tions, portfolios, and risk profiles to test the influence of the clients and their advisors’ risk characteristics on home bias, disposition effect, and trade frequency. I show that the disposition effect level is connected to a higher degree of investor loss aversion whereas the home bias is widely independent of risk preferences. Trade activity may however reduce both biases while risk aversion diminishes trade frequency. Addi-tionally, my findings propose that the interaction between clients and their advisors helps to reduce biases if both exhibit opposed risk preferences.|