Evidence on Student-Managed Funds : A Survey of U.S. Universities

An analysis of student-managed funds' operations in 35 universities in the U.S. was conducted with the data collected through an Internet-based survey. The results indicate that CAPM is used in most SMFs as the means to estimate the required rate of return. Value Line and Wall Street Journal are the two most widely used information sources by SMFs. It is not common for a SMF to be equipped with its own trading room. The median value of the SMFs is $460,000, but the sampling distribution of the SMFs' market capitalizations is highly right-skewed. Most of the SMFs have the same asset allocation decision. In total, about 69% of the SMFs in our sample invest at least 90% of the capital in Equity