Would investors prefer this fund to a value-weighted


Suppose a fund manager places equal weights on each publicly traded stock in the world. Support your answers to each of the following by citing the relevant empirical asset pricing literature:

a. Would the fund's expected return be more or less than on a similar value-weighted portfolio?

b. Would investors prefer this fund to a value-weighted portfolio invested in the same assets?

c. How should the fund manager benchmark the performance of the fund?

Solution Preview :

Prepared by a verified Expert
Portfolio Management: Would investors prefer this fund to a value-weighted
Reference No:- TGS01156901

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)