The current study establishes a two-stage investment decision-making model in order to examine the impact of race on investment behavior. Results show that although Blacks are less likely to own stocks than Whites, once ownership is accounted for, there is no difference in the portfolio allocation to risky assets. The model indicates racial disparities in risky asset ownership, which may be attributable to differences in information exposure and barriers to investment markets. The results suggest that a voluntary savings initiative accompanied by a graduated savings component could help remove investment barriers and enable access to more productive investments. Key words: investor behavior, portfolio allocation, race, risk tolerance, stocks

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