A famous finance professor once told us that good diversification meant holding everything in the world. Fine, but in what proportion?
Suppose you could invest in every country in the world. How much would you invest in each? In a market-capitalization weighted index, you’d invest in each country in proportion to the market value of its investments (its “market capitalization”). As seen above, the market-capitalization of the USA is about 30%, which would suggest investing 30% of one’s portfolio in the USA. Similarly, one would put 8% in China, and so on. All this data was pulled from the World Bank, and at the end of this post we’ll show you how we did it.
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This week, DSN suggests watching a couple videos. First, this captivating Errol Morris short, The Umbrella Man, over at the New York Times. Next, this clip of Sofitel Hotel security guards dancing in a back room shortly after their colleague reported a sexual assault by Dominique-Strauss Kahn. Lastly, the famous case of People vs. Collins.
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The 2012 Behavioral Decision Research in Management Conference is held biennially and brings together the best of behavioral research within, but not limited to, the areas of consumer behavior, organizational behavior, negotiation, managerial decision making, behavioral finance, experimental and behavioral economics, decision analysis, behavioral strategy, behavioral operations research, behavioral accounting, and medical and legal decision making.
Stanislas Dehaene and colleagues surveyed Mundurucu participants (in the Amazon) and Western participants (in the USA) on where they felts numbers lie on a scale from from 10-100. Specifically, participants had an interface like that pictured above, with 10 dots on the left and 100 dots on the right. They were then shown between 10 and 100 dots and asked to click on the line where they would fall.
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The aim of this Society for Consumer Psychology First International Conference is to foster the exchange of innovative theories and findings among psychologists and consumer researchers coming from different parts of the world. The small size of the conference (max120 attendees), the intimate Villa La Pietra location, the stunning Florence background, and the inspiring keynote speeches from Anne Maass (University of Padova) and Peter Gollwitzer (New York University), should facilitate idea generation and new collaborations.
