Why would investing in own-company stock present greater risk than investing in a diversified fund? Despite this

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Why would investing in own-company stock present greater risk than investing in a diversified fund? Despite this higher risk, many employees hold much of their 401(k) plan in company stock. Why does this phenomenon exist? Can heavy investment in company stock be rationalized? If so, how?

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Behavioral Finance

ISBN: 9780190868741

1st Edition

Authors: H. Kent Baker, Greg Filbeck, John R. Nofsinger

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