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Skewness and Investors' Decisions

Published online by Cambridge University Press:  19 October 2009

Jack Clark Francis
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Extract

It has been suggested by many [1, 2, 5, 6, 7, 10 and more] and denied by few that, ceteris paribus, a well-informed risk-averse investor should prefer investments which have positively skewed distributions of rates of return. Passing over the models which underlie such assertions, the question is addressed empirically here. Do (as opposed to “should”) investors prefer investments that are positively skewed, ceteris paribus?

Type
Research Article
Information
Journal of Financial and Quantitative Analysis , Volume 10 , Issue 1 , March 1975 , pp. 163 - 172
Copyright
Copyright © School of Business Administration, University of Washington 1975

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References

REFERENCES

[1]Arditti, Fred D. “Another Look at Mutual Fund Performance.” Journal of Financial and Quantitative Analysis, June 1971.CrossRefGoogle Scholar
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