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Information search in the mutual fund market in the U.S. A.
Author(s) -
ISRAELSEN CRAIG L.,
BEUTLER IVAN F.
Publication year - 1991
Publication title -
journal of consumer studies and home economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.775
H-Index - 71
eISSN - 1470-6431
pISSN - 0309-3891
DOI - 10.1111/j.1470-6431.1991.tb00657.x
Subject(s) - mutual fund , variation (astronomy) , mutual information , economics , microeconomics , business , finance , computer science , artificial intelligence , physics , astrophysics
Sequential decision‐making principles are introduced which can be applied to mutual fund investing. Specific attention is given to the nature of the mutual fund market and the expected pay‐off from a low‐cost information search. Empirical results are based on historical returns and information that is readily available in popular press sources. Substantial variation in historical performance was found and the pay‐off from a market search was positive and substantial in many cases.