Risk-Adjusted Impact of Administrative Costs on the Distribution of Terminal Wealth for Long-Term Investment
نویسندگان
چکیده
The impact of administrative costs on the distribution of terminal wealth is approximated using a simple formula applicable to many investment situations. We show that the reduction in median returns attributable to administrative fees is usually at least twice the amount of the administrative costs charged for most investment funds, when considering a risk-adjustment correction over a reasonably long-term time horizon. The example we present covers a number of standard cases and can be applied to passive investments, mutual funds, and hedge funds. Our results show investors the potential losses they face in performance due to administrative costs.
منابع مشابه
Long-term Planning of Optimal Placement of Distribution Transformers to Improve Reliability and Power Quality with the Approach of Reducing Costs and Losses
One of the most critical and complex issues in long-term planning of distribution networks is the optimal placement of distribution transformers. In this paper, the optimal placement of distribution transformers was investigated based on a complete and multi-objective function. In the proposed method, location, optimal capacity, and the service area are determined by minimizing costs (investmen...
متن کاملImproving Long Run Marginal Cost based Pricing along with Extended Benefit Factor method for Revenue Reconciliation of Transmission Network in Restructured Power System
Abstract : There are several methods to cover the costs of a transmission system and distribution networks. These methods are divided into either incremental or marginal approaches, which can be either long-term or short-term. The main difference between the incremental and marginal approach is how to calculate the cost of using the network. In the incremental approach, simulation and in the ma...
متن کاملInvestigating the economic effects of long-term investment in HSE , Oil company in Iran
Introduction: Even with the rising number of diseases and their severity as well as occupational-environmental accidents occurring within organizations, most managers do not still care about the profitability of implementing the health, safety, and environment (HSE) management system requirements. Material and Methods: Accordingly, the integration of the HSE costs calculated through engineerin...
متن کاملGranting Exit Option to the Insureds of the Iran Social Security Organization’s (ISSO) Pension Fund and its Impact on the Fund’s Sustainability
Collective pension funds have many advantages including larger risk pool and the possibility of interpersonal and intergenerational risk sharing, as well as economies of scale and lower administrative costs. For decades, however, this has been achieved through mandatory participation, while this traditional and mandatory form of contribution is no longer commensurate with the future of work. In...
متن کاملThe Effect of Urbanization on Income Inequality in Iran
Abstract. The dramatic growth of urbanization with the expansion of cities in terms of size and population has led to the creation of a variety of administrative structures to provide different types of administrative services and combinations. And bureaucratic and social mismatches cause corruption and unequal distribution of income and class fault. The main purpose of this study is to invest...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
برای دانلود متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید
ثبت ناماگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید
ورودعنوان ژورنال:
دوره 2014 شماره
صفحات -
تاریخ انتشار 2014