RT Journal Article SR Electronic T1 Stock Ownership Decisions in Defined-Contribution Pension Plans JF The Journal of Portfolio Management FD Institutional Investor Journals SP 92 OP 100 DO 10.3905/jpm.2004.92 VO 30 IS 4 A1 Julian Douglass A1 Owen Wu A1 William T Ziemba YR 2004 UL https://pm-research.com/content/30/4/92.abstract AB Why would investors choose a large weighting in the stock of their employer? Holding employer company stock is very risky. It is optimal only for employees with very low risk aversion or with very high return expectations for company stock. Rational one-period models cannot explain high observed weightings in company stock in defined-contribution pension plans. Nor can a behavioral interpretation. Some factors must be missing from rational choice models to explain employer company stock holdings.