Analysing the influence of dispersion of fundamentalists' valuations on the effectiveness of passive investment strategy under financial constraints

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Abstract

This paper analyses the influence of dispersion of fundamentalists' valuations on the effectiveness of passive investment strategy under financial constraints. As a result of intensive experiment, the following results were confirmed: (a) the degree of fundamental values' estimation accuracy affects the validity of passive investment strategy, (b) upper and lower constraints on tilting lead to the same results. These results are significant from both practical and academic view points.

Original languageEnglish
Pages (from-to)111-127
Number of pages17
JournalInternational Journal of Intelligent Systems Technologies and Applications
Volume12
Issue number2
DOIs
Publication statusPublished - 2013

Keywords

  • Agent-based modelling
  • Asset management
  • Behavioural finance
  • Finance
  • Information economics
  • Passive investment strategy

ASJC Scopus subject areas

  • Computer Science(all)

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