Mutual Fund Flows and Performance in Rational Markets Jonathan B. Berk University of California‚ Berkeley and National Bureau of Economic Research Richard C. Green Carnegie Mellon University We derive a parsimonious rational model of active portfolio management that reproduces many regularities widely regarded as anomalous. Fund flows rationally respond to past performance in the model even though performance is not persistent and investments with active managers do not outperform passive
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Spain‚ rather than Portugal‚ laid claim to most of South America because Spain and England was stressed that Portugal would utilize its developing wealth to try to command them so they choose to take care of this issue by exploring the Americas to gain wealth. Granted‚ Spain had to fight for its conquests‚ but in battle after battle - such as the defeat of the Inca Empire in 1532 - the Spanish proved victorious. Proximate factors such as horses‚ superior technology‚ and diseases explain
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their own natural resources and foster local industries‚ thus rebuilding economically and promoting independence unitedly. This would restore Congo through the modernization of the nation state giving them power in world stance. However‚ in order to gain independence to begin with‚ Congo would have to unite political parties as well as tribes. Lumumba believed that they would not be rid of colonial rule without coming together as one Congo. In fact‚ as his party‚ MNC‚ became the strongest political
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Question 1 Consider an option on a non-dividend-paying stock when the stock price is $30‚ the exercise price is $29‚ the risk-free interest rate is 5% per annum‚ the volatility is 25% per annum‚ and the time to maturity is four months. a. What is the price of the option if it is a European call? b. What is the price of the option if it is an American call? c. What is the price of the option if it is a European put? d. Verify that put–call parity holds. Question 2 Assume
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Mutual funds provide good investment opportunity to investors in general and especially to those investors who have little knowledge about security markets and its intricacies. As financial markets become more sophisticated and complex‚ investors need a financial intermediary who provides the required knowledge and professional expertise on successful investing. It is no wonder that in the birthplace of mutual funds – the USA – the fund industry has already overtaken the banking industry‚ more funds
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Central Committee of the Communist Party. This role gave him the ability to appoint his allies and supporters into government jobs and thus grow a foundation of political support. After the death of V.I. Lenin in 1924‚ Joseph Stalin had struggled to gain power. He outsmarted his rivals (Ex. Trotsky) in order to win the power clashes and take control of the Communist Party of the
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MUTUAL DEFENSE TREATY (MIDTERM REPORT) SUBMMITTED BY: JANELLE ROXANNE C. HULAR IV-1 TO BE SUBMMITTED TO: PROF. NATHANIEL LAXA The Mutual Defense Treaty between the Republic of the Philippines and the United States of America was signed by the representatives of the Philippines and United States on August 30‚1951 in Washington‚ D.C that signifies that the two country is legally bind themselves with this written agreement to live in peace with all peoples and all governments and desiring
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States success‚ they were head to head with the Soviet Union‚ each country trying to gain superiority over the other. During this time both countries were involved in the cold war which undoubtedly fueled both countries want to be superior. This particular event would eventually be called the Space Race. This race would start in 1957 and conclude in 1969 when Apollo 11 successfully landed on the moon. Soviet Space Gain Seen was published in The New York Times on January 1st‚ 1961. This article quotes
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Treaty of Paris signed and the Proclamation Line drawn on the maps‚ the colonists realized how little control they had over their destinies. The Crown decided to tax the colonies in an attempt to regain their losses‚ besides in the process they would gain a better understanding of exactly with which countries the colonies traded. The Privy Council‚ the Proclamation of 1763‚ and the Sugar Act of 1764 (all of which I put in my discussion post) were the first three acts of the Crown to go into effect.
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appreciation to Stalin for his employment of them. Thus people felt an obligation towards helping him extend his power. Trotsky however did not exploit his potion as commissar for the red army emphasising how Stalin’s cunning and opportunism helped him to gain power within the party. After establishing a support network Stalin began to abolish his rivals and any source of threat. Stalin’s troika were able to successfully defeat Trotsky at the 13th party congress when Trotsky raised objections to the growing
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