Investor comparing the weight of domestic and international investments, representing home bias

Understanding Home Bias: The Tendency for Investors to Overlook Diversification Opportunities in Foreign Equities

Definition and Background of Home Bias Home bias, also known as country bias or familiarity bias, is the tendency for investors to allocate a larger portion of their investment portfolio to domestic securities rather than international ones. This behavior can lead to less diversification and potentially increased risk if markets

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