In this case series, Margaret Ballis, a soon-to-be Darden School of Business graduate, is about to start her dream job at a leading investment management business. On her way to becoming a fund manager, she cannot help wondering about her future success.
Ballis is trying to evaluate her ability to consistently outperform the stock market; she questions whether it is even possible to attain persistent performance as a fund manager. Using data downloaded from Morningstar, Inc., on 2,852 mutual funds, students are prompted to inquire whether funds that beat the S&P 500 Index standard during a five-year interval are more likely to overcome the Index over the next five-year span.
Students are requested to take a closer look at the "hot hand" phenomenon by investigating investors' reactions to runs of outperformance and examining whether funds that outperformed their peers several years in a row additionally outgrow their peers when it comes to size.
PUBLICATION DATE: February 04, 2011 PRODUCT #: UV5616-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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