Financial theory is often based on the belief that the actions of rational investors determine prices, which leads to the elimination of dominated financial instruments. Recently a series of articles have been published which question the rationality of investor behavior. Standard and Poor's 500...

Results of recent research indicate small investor sentiment, as measured by the change in the discount on closed-end funds, is an important factor in the return-generating process for common stocks. We find no evidence of it being an important factor in the return-generating process. We next...

Financial theory is often based on the belief that the actions of rational investors determine prices, which leads to the elimination of dominated financial instruments. Recently a series of articles have been published which question the rationality of investor behavior. Standard and Poor s 500...

Financial theory is often based on the belief that the actions of rational investorsdetermine prices, which leads to the elimination of dominated financial instruments. Recently a series of articles have been published which question therationality of investor behavior. Standard and Poor s 500...

S&P 500 index funds represent one of the simplest vehicles for examining rational behavior. They hold virtually the same securities, yet their returns differ by more than 2 percent per year. Although the relative returns of alternative S&P 500 funds are easily predictable, the relationship...

Results of recent research indicate small investor sentiment, as measured by the change in the discount on closed-end funds, is an important factor in the return generating process for common stocks. We find no evidence of it being an important factor in the return generating process. We next...