The Perils of Performance Measurement in the German Mutual Fund Industry

The Perils of Performance Measurement in the German Mutual-Fund Industry

We document a curious feature of the German mutual fund industry. Unlike U.S. mutual funds, funds domiciled in Germany do not necessarily compute their net asset values (NAV) as of market close. Using a sample of German equity funds, we infer each fund’s NAV closing time from the best-fit market model using both maximum likelihood and Bayesian estimation. The results of both approaches coincide...

The MUTUAL FUND INDUSTRY

Risk Behavior and Performance Benchmarks in the Mutual Fund Industry

The determinants of risk tolerance play an essential role in asset pricing. In this paper, I develop and test empirically a behavioral model of investor risk strategies. Difficulty in quantifying many of the elements of behavioral theories has so far necessitated experimental, rather than empirical, evaluation of most such models. Therefore, the methodology employed in this paper – testing a be...

Measuring Skill in the Mutual Fund Industry∗

Using the dollar-value that a mutual fund adds as the measure of skill, we find that the average mutual fund adds about $2 million per year and that this skill persists for as long as 10 years. We further document that investors recognize this skill and reward it by investing more capital with better funds. Better funds earn higher aggregate fees, and there is a strong positive correlation betw...

the relationship between learners critical thinking ability and their performance in the reading sections of the tofel and ielts test

the study reflected in this thesis aims at finding out relationships between critical thinking (ct), and the reading sections of tofel and ielts tests. the study tries to find any relationships between the ct ability of students and their performance on reading tests of tofel and academic ielts. however, no research has ever been conducted to investigate the relationship between ct and the read...