E i r f f1 i1 rf u m rf i 1 corporate finance

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Unformatted text preview: nce utility functions, then the CAPM holds. All investors hold the market portfolio. Implication People should do passive asset management. Stock picking is not profitable. Corporate Finance, Tri Vi Dang, Columbia University, Fall 2013 44 Observation Many institutional investors do active management (Stock picking) Many different investment styles Long Short Equity strategy Growth versus Value strategy Momentum versus Contrarian strategy High Dividend strategy Corporate Finance, Tri Vi Dang, Columbia University, Fall 2013 45 Remark There is an ongoing debate between two groups of people. Market efficiency proponents Behavioral finance people Corporate Finance, Tri Vi Dang, Columbia University, Fall 2013 46...
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This document was uploaded on 02/16/2014 for the course ECON w4280 at Columbia.

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