This paper uses stochastic dominance techniques to examine whether managerial skills vary across fund managers in European equity funds. The use of these techniques allows us to compare different investment alternatives in an uncertain setting under very simple assumptions regarding investor...

This paper tests the hypothesis that portfolio diversification can increase the threat of systemic financial risk. The paper first provides a theoretical rationale for the possibility that systemic risk may be increased by the proliferation of financial instruments that lead operators to hold...