tailieunhanh - Anomalies Closed-End Mutual Funds

The primary goals of the School of Medicine at SBU are to 1) advance the medical sciences by translating cutting-edge biomedical science into diagnostic, thera- peutic and prognostic advances, 2) develop a diverse cadre of caring and skilled physicians and biomedical scientists who are outstanding candidates for graduate and specialty training programs, 3) deliver compassion- ate clinical care in an efficient, state-of-the-art, safe and cost-conscious fashion, and 4) reach out to multiple communities to enrich both our citizens and ourselves. We should train our graduates and faculty to value and apply the scientific method and evidence-based medicine to the solution of clinical problems. They will integrate clinical, biomedical and behavioral. | Journal of Economic Perspectives Volume 4 Number 4 Fall 1990 Pages 153-164 Anomalies Closed-End Mutual Funds Charles M. c. Lee Andrei Shleifer and Richard H. Thaler Economics can be distinguished from other social sciences by the belief that most all behavior can be explained by assuming that agents have stable well-defined preferences and make rational choices consistent with those preferences in markets that eventually clear. An empirical result qualifies as an anomaly if it is difficult to rationalize or if implausible assumptions are necessary to explain it within the paradigm. This column will present a series of such anomalies. Readers are invited to suggest topics for future columns by sending a note with some reference to or better yet copies of the relevant research. Comments on anomalies printed here are also welcome. The address is Richard Thaler c o Journal of Economic Perspectives Johnson Graduate School of Management Malott Hall Cornell University Ithaca NY 14853. Introduction Testing the efficient markets hypothesis is often difficult. For example one implication of the hypothesis is that there are no free lunches no easy ways to make money. However apparent violations of this implication such as mean reversion in asset prices are said by many to be evidence of variation in risk which is consistent with the efficient markets hypothesis. A more direct way to test the hypothesis is to compare the prices of assets to their intrinsic or Charles M. c. Lee is Assistant Professor of Accounting Graduate School of Business University of Michigan Ann Arbor Michigan. Andrei Shleifer is Professor of Finance Graduate School of Business University of Chicago Chicago Illinois. Richard H. Thaler is the Henrietta Johnson Louis Professor of Economics at the Johnson School of Management Cornell University Ithaca New York. 154 Journal of Economic Perspectives fundamental values that is the expected present values of future cash flows. One finance professor we know used