The Appeal of Risky Assets

Stolper, Anno (Oktober 2010): The Appeal of Risky Assets. Münchener Wirtschaftswissenschaftliche Beiträge (VWL) 2010-34

Abstract

A fund's performance is usually compared to the performance of an index or other funds. If a fund trails the benchmark, the fund manager is often replaced. We argue that this may lead to excessive risk-taking if fund managers differ in ability and have the opportunity to take excessive risk. To match the benchmark, fund managers may increase the risk of their portfolio even if this decreases the expected return on the portfolio.

• Dokumententyp: Paper
• Publikationsform: Preprint
• Keywords: Benchmarking; risk taking
• Fakultät: Volkswirtschaft ; Volkswirtschaft > Munich Discussion Papers in Economics
• Themengebiete: 300 Sozialwissenschaften > 300 Sozialwissenschaft, Soziologie ; 300 Sozialwissenschaften > 330 Wirtschaft
• JEL Classification: G01, G11, G23
• Sprache: Englisch