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Full-Text Articles in Social and Behavioral Sciences
Do Mutual Funds Understate Their Volatility?, Ladd Kochman, Ravija Badarinathi, Randy Goodwin
Do Mutual Funds Understate Their Volatility?, Ladd Kochman, Ravija Badarinathi, Randy Goodwin
Ladd Kochman
It is probably fair to say that the standard deviation, as a measure of total risk, fell out of favor when researchers discovered that diversification makes only systematic risk relevant to investors. Since even small portfolios of 12 to 18 stocks can eliminate as much as 90 percent of a portfolio's unsystematic risk (Evans and Archer, 1968), it is reasonable to think that average and institutional investors alike attach little importance to their holdings' standard deviation. Why then should it matter if mutual funds understate their standard deviations? After all, even grossly understated standard deviations can still overstate the risk …
Market Efficiency And The Women's Nba, Ladd Kochman, Randy Goodwin
Market Efficiency And The Women's Nba, Ladd Kochman, Randy Goodwin
Ladd Kochman
The availability of point spreads for the past three WNBA seasons offers researchers an early opportunity to test the efficiency of the market for wagers on WNBA games. While the more mature betting markets for football, baseball and men's basketball have generally denied regular profits to participants, the unique and emerging nature of the WNBA would seem to warrant another look at the vulnerability of betting lines. By examining the efficiency of WNBA point spreads, this study is, to a large extent, testing the hypothesis that markets in the emerging stage lack the participation that ensures efficient pricing and thus …