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Does It All Add Up? Benchmarks and the Compensation of Active Portfolio Managers

Anat R. Admati, Paul Pfleiderer

Open publisher page 339 citations

Abstract

I. Introduction In this article we exam-ine theoretically the Suppose a portfolio manager investing in Japa- use of benchmark port-folios in the compensa-nese stocks realizes a return of 27%. How well tion of privately in-has she performed? A good answer to this ques-

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What this paper is about

I. Introduction In this article we exam-ine theoretically the Suppose a portfolio manager investing in Japa- use of benchmark port-folios in the compensa-nese stocks realizes a return of 27%. How well tion of privately in-has she performed? A good answer to this ques-

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OpenAlex reports 339 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

I. Introduction In this article we exam-ine theoretically the Suppose a portfolio manager investing in Japa- use of benchmark port-folios in the compensa-nese stocks realizes a return of 27%. How well tion of privately in-has she performed? A good answer to this ques-

Key concepts: Business, Compensation (psychology), Portfolio, Process management, Accounting, Knowledge management, Computer science, Finance

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