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This paper uses a new data set of quarterly portfolio holdings of 769 all-equity pension funds between 1985 and 1989 to evaluate the potential effect of their trading on stock prices. We address two aspects of trading by money managers: herding, which refers to buying (selling) the same stocks...
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finance, which emphasize the extreme volatility and boom-bust dynamics of key time series, such as stock prices, credit, and … relaxing the assumption of rational expectations is a promising strategy, helps theory and evidence go together, and offers a …
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