This study examines the influence of investment fund performance presentation format on investor decisions. We perform an experiment in which participants are shown past performance information about two funds one with superior short-term results and the other with better long-term results and...

The risk management department usually imposes to asset managers a maximum value of the tracking error volatility (TEV), but it does not establish a rule on TEV to understand whether portfolio managers are active. Analytical methods are derived to understand whether the asset allocation is...