{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Lecture #15 - Ec 136 Financial Economics Lecture 15 October...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Ec 136, Financial Economics Lecture 15 October 22
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Outline for today 1. Mutual fund performance. 2. E°cient markets hypothesis. 3. Rational expectations. 4. Expectations and EMH. www.econ.berkeley.edu/~szeidl/ec136/ec136index.htm Readings: BKM Chapter 4, 12.1-12.2, 12.4-12.6 (Chap- ter 11 in editions 7&8) Problem set 5 : due October 29, Thurs, in class.
Image of page 2
1 Mutual fund performance ° Mutual funds are portfolios . How well do fund managers pick the stocks? ° Luck versus ability { Suppose fund manager has 50% chance of beating market. { Odds of beating 8 years in a row? ° Survivorship bias : only see results for funds that survive. { Less successful funds are shut down ° Performance persistence { Strongest on the downside { Much of it driven by fees
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Name Ticker Asset Class YTD as of 10/20/2009 Average Annual Returns as 1 Year 5 Year 10 Year 500 Index VFINX Stock - General 23.23% –6.87% 0.94% –0.23% Diversified Equity VDEQX Stock - General 30.37% –2.72% Dividend Appreciation Index VDAIX Stock - General 16.74% –4.78% Dividend Growth VDIGX Stock - General 17.55% –6.04% 3.94% 1.77% Equity Income VEIPX Stock - General 14.63% –9.12% 1.93% 3.03% FTSE Social Index VFTSX Stock - General 32.13% –6.30% –1.38% Growth and Income VQNPX Stock - General 19.34% –11.29% –0.53% –0.48% Growth Index
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern