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If there is a substantial amount of local bias in investors' portfolios, do you expect that regional shocks to the economy will be localized or

If there is a substantial amount of local bias in investors' portfolios, do you expect that regional shocks to the economy will be localized or will they quickly spread over the country? For example, if there is a negative economic shock in Florida, what will be the speed that this shock will spread to other parts of the country if there is a lot of local bias?

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