Historically, the literature on money management has not consistently applied the rational expectations equilibrium concept. We explain why and summarize recent developments in the money management literature that do apply this concept correctly. We demonstrate that in many respects the rational expectations equilibrium better approximates the observed equilibrium in the money management space ...

Title of dissertation: ESSAYS ON MUTUAL FUNDS Nitin Kumar, Doctor of Philosophy, 2013 Dissertation directed by: Professor Russ Wermers Department of Finance Robert H. Smith School of Business This dissertation comprises of three essays on mutual funds. In the first essay, I test whether fund investors rationally incorporate portfolio manager ownership disclosure in their portfolio allocation de...

Data envelopment analysis (DEA) is an efficient tool for evaluating mutual fund performance. It is important for investors to select the best funds for investment. In evaluation of mutual fund performance, besides quantitative elements, there are many qualitative elements that are of importance to the investors. In this paper, value efficiency analysis (VEA) was used in mutual funds performance...

A growing economy has an un-satiable demand for funds. If the existing assets of a firm can be used as a source of funds it would be a boon for such firm. Additionally, if these assets can be converted into negotiable instruments it would further enhance the attractiveness of the product. Finally, if the funds so received are repaid not from earnings of the firm but from the cash flows of pool ...

The Black-Scholes Equation is arguably the most influential financial equation, as it an effective example of how to eliminate risk from a portfolio by using hedged position. Hedged positions are used many firms, mutual funds and finance companies increase value assets over time. derivation equation often considered difficult understand overly complicated, when in reality confusion arises misun...

It is a well-known fact that actively managed mutual funds on average underperform passive benchmarks. In this paper, we use the stochastic dominance test proposed by Linton, Maasoumi, and Whang (2005) to shed new light on mutual fund performance on average and across styles. This test evaluates mutual fund performance using a non-parametric framework that 1) imposes a minimal set of conditions...