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Analyzing cross sectional determinants of fund flows, this study finds evidence that investors' risk aversion is time-varying. In particular, the periods over which the increases in risk aversion are observed are associated with contemporaneously low market returns, suggesting that increases in...
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performance fees even though these funds may be more expensive. According to agency theory, performance fees could incentivize … Prospect Theory preferences can help explain the emergence of certain financial products beyond other "classical" explanations …
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