Risk taking by mutual funds as a response to incentives
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In this paper, the authors examine a potential agency conflict between mutual fund investors and mutual fund companies, where investors would like the fund company to use its judgment to maximize risk-adjusted fund retraction.Abstract:
This paper examines a potential agency conflict between mutual fund investors and mutual fund companies. Investors would like the fund company to use its judgment to maximize risk‐adjusted fund ret...read more
Citations
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References
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Aggregation and linearity in the provision of intertemporal incentives
Bengt Holmstrom,Paul Milgrom +1 more
TL;DR: In this paper, the authors consider the problem of providing incentives over time for an agent with constant absolute risk aversion, and find that the optimal compensation scheme is a linear function of a vector of accounts which count the number of times that each of the N kinds of observable events occurs.
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