Do Bad Managers Take More Risks Than Good Managers?

Posted on Jun 3, 2011 by George F Huhn
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In a large study of mutual fund managers, researchers studied the relationship between a manager’s risk choices and their prior performance relative to their peers. They found that the relationship between a manager’s risk choices and prior performance, compensation, and job security was U-shaped. In other words, poorer performing managers with lower job security tended […]