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We investigate incentive effects of a typical hedge-fund contract for a manager with power utility. With a one-year horizon, she displays risk-taking that varies dramatically with fund value. We extend the model to multiple yearly evaluation periods and find her risk-taking is rapidly moderated...
Persistent link: https://www.econbiz.de/10005836975
foreign exchange reserve management. First, according to rules of thumb, the authors assess the optimal size of China …
Persistent link: https://www.econbiz.de/10011258321