The financial sector incurred big losses during the recent financial collapse and recession. The losses occurred despite regulatory requirements imposed upon the financial services industry meant to ensure confidence and stability. This study analyzes the profitability and stock returns of...

Mutual fund managers face increasing competition and have incentives to quickly reallocate their portfolios in order to achieve the best risk-adjusted return. However, portfolio allocation is costly, as trading, administrative, and information costs all lower returns after management fees....