I'm trying to develop a study which links a person's demographic and social characteristics to a tendency to under diversify their portfolio. So far I was accounting for risk aversion and just going the divide by n method, but is there a more specific way to know if a person is under diversified?
For context, in the study I give participants 3 assets, a low risk bond, moderate risk fund and high risk stock, and ask them to split assets between the three classes. This happens over 3 trading periods, and I have full control over the return of the asset
Sorry if this question isn't very specific.. is there a way?