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Risk-Adjusted Impact of Administrative Costs on the Distribution of Terminal Wealth for Long-Term Investment
Joint Authors
Guillén, M.
Nielsen, Jens P.
Pérez-Marín, Ana M.
Jarner, Søren Fiig
Source
Issue
Vol. 2014, Issue 2014 (31 Dec. 2014), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2014-08-11
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Medicine
Information Technology and Computer Science
Abstract EN
The impact of administrative costs on the distribution of terminal wealth is approximated using a simple formula applicable to many investment situations.
We show that the reduction in median returns attributable to administrative fees is usually at least twice the amount of the administrative costs charged for most investment funds, when considering a risk-adjustment correction over a reasonably long-term time horizon.
The example we present covers a number of standard cases and can be applied to passive investments, mutual funds, and hedge funds.
Our results show investors the potential losses they face in performance due to administrative costs.
American Psychological Association (APA)
Guillén, M.& Jarner, Søren Fiig& Nielsen, Jens P.& Pérez-Marín, Ana M.. 2014. Risk-Adjusted Impact of Administrative Costs on the Distribution of Terminal Wealth for Long-Term Investment. The Scientific World Journal،Vol. 2014, no. 2014, pp.1-12.
https://search.emarefa.net/detail/BIM-1049950
Modern Language Association (MLA)
Guillén, M.…[et al.]. Risk-Adjusted Impact of Administrative Costs on the Distribution of Terminal Wealth for Long-Term Investment. The Scientific World Journal No. 2014 (2014), pp.1-12.
https://search.emarefa.net/detail/BIM-1049950
American Medical Association (AMA)
Guillén, M.& Jarner, Søren Fiig& Nielsen, Jens P.& Pérez-Marín, Ana M.. Risk-Adjusted Impact of Administrative Costs on the Distribution of Terminal Wealth for Long-Term Investment. The Scientific World Journal. 2014. Vol. 2014, no. 2014, pp.1-12.
https://search.emarefa.net/detail/BIM-1049950
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1049950