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In this paper, a model of bounded rational investors investing their portfolio in a passive investment vehicle (e.g., an Exchange Traded Fund replicating a broad index) or an actively managed fund is presented. The model proposes that the quick reswitching of these short-term oriented investors...
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face of financial compensation agency problems during a limited period in relation to the concept of sustainability. In the … construction of the principal’s compensation system, the agent’s degree of operational financial effort will affect the overall … sustainability can provide a fair and optimal financial system, from a sustainability perspective. The main contribution of this …
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